Why will 2017 be a good time to sell?
A number of reputable sources have predicted that the trend is set to continue, with 2017 expected to deliver high volumes of deal completions and active buyers. Business owners are likely to be faced with multiple potential buyers, who will drive negotiation processes and increase the sale value of a company.
Research has found that 75% of M&A experts expect deal volumes within the sub-£100m sector to increase during 2017. 60% of experts also expect deal volumes to grow within the over-£100m sector of the market.
Data intelligence specialists, Preqin, have stated that globally, financial sponsors currently possess $1.1 trillion of uninvested capital. Financial sponsors are increasingly prioritising this capital for M&A due to a robust environment in which many companies are seeking acquisitions and require outside funding. In order to generate return, this capital will need to be invested soon, and this will most likely occur in 2017.
Cross-border deals are also expected to increase in 2017. The drop in sterling is predicted to make UK products more competitively priced on the market and increase the number of exports. Therefore, overseas acquirers will seize the opportunity to invest in UK companies as a means of boosting their profits through exporting goods.
These factors all point towards an active and thriving M&A market in the year ahead. With this in mind, now is the perfect time for business owners to undertake a company valuation to get the ball rolling for a sale this year.
Please do not hesitate to fill out our free valuation calculator, to find out the potential worth of your company.