There comes a time when selling your business just makes sense. With Britain’s economy on the rise, now could be the right time to make the difficult decision on whether to get out while the going is good. Whether you’re selling up with a view to retirement, have a better offer elsewhere, or want to cut your losses and move on, we explain the reasons why you should sell your business when the economy is at its peak.
You’ll Get a Better Valuation
When the economy is buoyant, the value of your business is likely to rise. People tend to invest more in positive economies hence increasing the demand for businesses just like yours.
When the demand is high, the value of the business tends to go up and you could see yourself better off than if you waited a while to make the decision.
This year, Britain has been identified as the fastest growing economy in the developed world – given that it is hard to predict how long this will last, the current conditions offer you an opportunity to make the most out of your sale.
To determine the value of your business in relation to the current economic condition, you might need professional help and with over 20 years of experience, KBS Corporate can offer you a tailored strategic approach to the sale of your company.
When the economy is strong, the number of people willing to buy your business increases. In Britain, the positive economic outlook has resulted in low-interest rates of up to 0.5%. This low cost of borrowing tends to attract potential buyers so there will likely be more interested parties, which could push the value of your company up further.
Obviously price is not the only factor – if you’ve poured your heart and soul into a business, seeing it sold to someone who will care about it as much as you might be one of your criteria for sale. With more investors there’s likely to be more choice for you in regard with who you choose to take over your business, and you can look for someone able to develop and help your business thrive.
In Britain, capital gains tax has been reduced to a low of 10% from previous rates of 18% to 28%. Given that the rates could rise any day, selling your business as soon as possible is something to seriously consider.
When coupled with the growing economy, capital gains tax relief will help you reap maximum profits for your business sale. We are on hand to help you determine your capital gains tax liability and ways you can maximise your profit.
High Investment Opportunities In Other Businesses
When the economy is strong there are many investment opportunities out there, and you may wish to take advantage of these once the sale of your business has gone through. The better the price you get for your business, the more opportunity you will have to invest in future profits and having KBS Corporate handle the sale of your business could lead to them finding further opportunities for you to invest in other businesses.
It’s clear that the state of the economy will fluctuate in the future, so if you’re considering selling your business, then you may wish to act now. If you’d like an informal chat with us about the process, get in touch today to arrange a consultation.