The decision for the UK to leave the European Union was a historic one, causing a great deal of controversy and debate both inside and outside of the business world. However, for British businesses the decision has resulted in confusion and concern for the future, both in terms of the daily running of businesses and the buying and selling of companies.
We've explored some of the ways Brexit could affect the sale of your business and offered some helpful advice on how to manage your situation, so you can ensure you're prepared for any eventuality.
When the results of the referendum were announced, some business experts expressed concern that buyers would be put off from buying British businesses due to the potential of added complications. Naturally, there are some buyers who will avoid adding to their portfolio before a deal is agreed but in reality, a good business will always attract buyers.
Many forecasts even predict that Brexit could prompt a boost in the number of buyers who want to have a place in the new UK trading environment, particularly if they have a desire to sell products to the British market. Work hard to keep your trade links open and customer base in shape and you'll be less likely to be subjected to the negative effects of an EU exit.
For some businesses, undisrupted lending is crucial to continued success, and this is likely to be the same for any buyer taking on the company. While Brexit probably won't have an impact on the level of funding available for smaller businesses in Britain, it is possible that some larger companies will face additional challenges as the UK prepares to leave the EU.
However, if you're looking to sell in markets that are thriving such as fintech, edtech or environmental markets, it's unlikely that the uncertainty of Brexit will have an impact on lending. Meanwhile, businesses in struggling sectors are unlikely to be faced with any additional challenges, particularly if you are willing to embrace new markets and niches that could become available once a deal is agreed.
Taking advantage of a stable system
The stability of the British legal and tax system has always been one of the most attractive features UK businesses have to offer foreign buyers, and this is unlikely to change when a Brexit deal is agreed. However, the way a business reacts to any changes in legislation and tax rules could be a factor in their ongoing successes after Brexit comes into effect.
To avoid having potential buyers put off from purchasing your British company, make sure you stay on top of any changes made by the government that could affect the way your business should be run. This could mean altering the way you keep your books, changing your tax or payroll system, or introducing new security procedures. No matter what the changes, stay vigilant so that any foreign or local buyers can see that you have reacted confidently and efficiently to Brexit.