Ryan Bilsborough Manager – corporate finance
/RyanBilsborough /PMMSolutionsfor
BusinessLLP
IS NOW THE TIME TO SELL
MY BUSINESS? We are often asked: ‘Is now the right time to sell my business?’
and markets a wide range of branded and private label dairy products made with milk from 1,300 farmers in Britain, alongside a designated plant-based range. It is also one of the best-selling yogurt brands in the country.
Rob Hutchison, chief executive of Müller Milk & Ingredients, says the proposed Yew Tree deal represents a “significant investment” in the British dairy industry. And he believes it will open up large-scale opportunities.
He said: “Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with
Expert View
DON’T OVERLOOK THE STRENGTH OF MBOS
By Jenny Burke, partner at Forbes
In the realm of business transitions, Management Buyouts (MBOs) have stood the test of time, maintaining their popularity amidst evolving economic conditions.
The concept of MBOs is straightforward, they occur when a company’s management team pools resources to purchase the business they manage, often with the support of external financing.
MBOs continue to be favoured for several reasons. Their ability to offer continuity and uphold the business’s core values, a comforting prospect for owners stepping down or shifting gears, yet keen to entrust their life’s work to familiar hands.
In times of economic uncertainty or when a company is not performing at its peak, MBOs offer a strategic opportunity. Granting management the reins to redirect the company’s course with the promise of autonomy and financial reward.
In today’s climate, where traditional
takeovers face hurdles, MBOs emerge as a compelling alternative. Armed with in-depth knowledge, management can negotiate advantageous deals and enact strategic overhauls with a deftness that external parties can’t match. This insider edge not only garners investor confidence but also positions MBOs as a desirable investment.
MBOs merit consideration for their capacity to closely align with the company’s triumphs, ensure seamless succession, and honour the legacy of the business founders. They signal a transformative trend in private equity, heralding a shift towards more personal, engaged forms of ownership transition.
In conclusion, MBOs should not be overlooked. They offer a unique combination of continuity, alignment of interests, and preservation of legacy, making them a significant consideration in the private equity landscape and a testament to the enduring nature of more involved forms of ownership transition.
LANCASHIREBUSINES SV
IEW.CO.UK its customers and supplying farms.
“When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.
“Britain is a great place for dairy farming and has an excellent reputation for quality, welfare standards, and sustainability.
“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”
Continued on Page 34
Despite a relative slowdown in M&A activity in 2023 due to a range of economic challenges, including high inflation and elevated interest rates, this year we have seen headwinds ease and, for us, the market is looking increasingly buoyant.
The new Labour government appears to be offering political stability, inflation is at or around 2 per cent and interest rates have begun to reduce, suggesting investor and trade buyer appetite will soon return, especially in the context of international M&A where interest in UK acquisitions remains strong.
A potential concern is the rumoured increase to Capital Gains Tax (CGT) which could be announced in the Autumn Budget. Currently, there is a high perceived risk that the government will increase these rates and the effect could be significant for owners looking to exit, due to the increased risk of a mismatch between buyer and seller price expectations that a CGT increase will create.
If you are considering selling your business, we can confidently say that good businesses are still selling for good prices, despite lingering market uncertainty - there is nothing in the current political or economic environment to prevent you achieving the sale you have worked hard to achieve.
If now is the right time for you, speak to a corporate finance adviser, talk through your plans, let them absorb the emotion that comes with starting the journey of a business sale… while you look forward and make plans for the future.
Arrange a free, confidential meeting by calling us on 01254 679131 or visiting
www.pmm.co.uk
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DEALMAKERS
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