Big business opportunities could be on the horizon, says Shrewsbury adviser

Cian Iddison is a Business Advisory Senior at Dyke Yaxley Chartered Accountants in Shrewsbury, and said companies should be on the lookout for potential acquisitions that could be the right fit.

“The Government’s Budget has revealed it intends to increase the Capital Gains Tax rate for Business Asset Disposal Relief, which means many business owners will be considering a swift sale before the April 6, 2025 deadline," he said. 

“Buying a business is certainly a lot faster than growing organically – it does have its risks, but they can be reduced considerably if the deal is structured correctly and the acquisition is carried out in an organised way.”

Cian said the advantages of acquiring a business could include an insight into operational efficiencies and competitive advantages that could bring financial gains.  

“A well-executed acquisition can bring significant cost savings, such as reducing overlapping operations, centralising functions, and improving supply chain efficiencies.

“Streamlining technology, talent, or infrastructure will result in improved productivity and cost-effectiveness, and in sectors where digital transformation is key, acquiring a company with advanced digital capabilities can enhance the buyer’s technological infrastructure.”

Cian added that acquiring another company could instantly provide access to new markets, customers, distribution channels and products that would take years to build organically, and with it, and increased profile in your chosen industry.

“Acquiring competitors allows a company to increase its market share, reduce competition and achieve economies of scale. Larger businesses are generally more resilient, and the larger you are, the more you can set higher prices or control supply more effectively," he said. 

“Buying a company may give the acquirer access to skilled employees, specialist knowledge, or a strong management team, that can drive innovation and improve overall business performance.

“A company with valuable patents, trademarks, or proprietary technologies may be an attractive acquisition target to boost competitiveness.

“To assist with succession planning, a larger company is generally easier to sell with more interest from potential purchasers, and having a larger pool of management may also provide another route to exit via a management buyout.

“If you believe the next few months could be a great opportunity to make swift progress when it comes to acquisitions, it’s vital that you seek out professional advice to maximise the options available.”