3 minutes read Mergers and acquisitions (“M&A”) are increasingly common however, the increasing frequency of M&A deals has raised concerns regarding the tax implications. There is a growing debate about whether Capital Gains Tax (“CGT”) rates should be increased for M&A transactions. Proponents of the increase argue that higher CGT rates will generate more revenue for…
5 minutes read In business valuations, ‘Debt Free Cash Free’ is a commonly used term that impacts the sale process. At Avondale, we know that selling your business is a huge step and one that will have a far-reaching, and hopefully positive impact on your future. However, the business sale journey will take you down many new…
5 minutes read An outstanding business, with great growth potential in an expanding market and strong recurring revenue, will always command a premium value. It can, however, take many years to design and create such a business, and often it requires time, capital, the right team and place. So, if we put aside the exceptions, how…
4 minutes read Why do some advisors insist on using all the legal terms when discussing Employee Ownership Trusts structures (“EOTs”)? Are they wanting to make these transactions seem complex and expensive? Why do they only seek owners who are ‘altruistic’ or team-driven? This approach simply puts people off Employee Ownership Trusts and yet, with nearly…
5 minutes read With nearly a third of M&A deals going to Private Equity buyers in 2022, you may be asking “should I sell to them?” The answer will be driven by several factors including the deal structure and of course price, but in a world of abundant capital, a Private Equity (“PE”) sale may be…
10 minutes read Our series of articles on the ‘Perfect’ Business Sale a couple of years ago proved to be very popular, so we thought it would be good to start 2023 with a summary of what we believe are the key strategies to achieve the perfect business sale. The ‘perfect’ business sale is a fast,…
5 minute read Know Your Business to Improve Saleability As a business leader, you hope your company will be profitable and achieve incremental growth. You have a good feel for the level of profit your company is going to deliver over the next 12 to 18 months but the value you have in the business usually…
11 minutes read Cost Reduction With margins squeezed and slow growth in a world of inflation, there are fewer opportunities to pass on your increased costs. Business costs are challenging, on second thoughts, they are psychologically difficult – but there are choices. How do you review your cost base and spot ‘layer cake’? Where can…
12 minutes read The Market Recessions are not just about poor economic growth, they are often accompanied by other characteristics such as widespread job losses, fewer available jobs, and more Government relief. Investors may baulk, but stocks tend to bounce back rapidly making recessions a good time to invest. With all the turmoil in the…
10 minutes read Selling a business through an Employee Ownership Trust (EOT) is an excellent exit strategy for those shareholders who want to preserve the legacy of their company whilst realising wealth at 0% Capital Gains Tax. It can also be a soft exit for sellers who want to gradually relinquish control – but many, however, do not explore an EOT…