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Alternative finance available via ‘Asset Based Lending’ leaps to £4.3 billion

December 12th, 2016 by Chris St Cartmail

asset based finance in the UK
Amount of available lending against machinery and property in the UK

The amount of alternative finance available under ‘asset based lending’ to UK businesses reached a record high of £4.3 billion, up 22% in the last year.
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Company liquidation rate in England & Wales lowest since records began in 1984

November 27th, 2016 by Chris St Cartmail

Insolvency Office statistics reveal that the company liquidation rate in England and Wales is at its lowest level since records began in 1984. There has been a continuous downward trend in the rate since 2011.

In the 12 months to the end of September 2016, 0.41 per cent of active companies (about one in 244) went into liquidation. At the same point last year 0.46 per cent of companies (one in 215) had collapsed into liquidation in the previous 12 months.

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Manny Stul – EY Entrepreneur of the Year 2016

October 11th, 2016 by Chris St Cartmail

EY’s Entrepreneur of the Year Awards is an annual celebration of the energy and strength of businesspeople the world over. The awards aren’t just about individuals; they shine a light on the passion and spirit that continues to reinvigorate the business world and beyond.

Manny Stul

Manny Stul – EY photo

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A guide to buying assets from insolvent companies

September 29th, 2016 by Chris St Cartmail
Unfortunately, there will always be companies that fail to succeed and are closed down. The assets left behind, like equipment, machinery and property, are left for the licensed insolvency practitioner (IP) or liquidator to sell on to try and make some money back for creditors who are owed money. The profits made from asset sales are then distributed equally to creditors and the case is closed.
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What now for British M&A?

June 24th, 2016 by Chris St Cartmail

The Great British public has spoken and voted for the country to exit the EU. Cameron has resigned and the government is trying to put together an economic and legal plan for the road ahead.

Business owners will need to stay calm and concentrate on trading as usual. The uncertainty of markets and currencies may create difficult trading conditions for larger businesses who have suffered share price falls.

Economically it will be important for Britain to maintain inward investment and much of this, at least in the short to medium term, depends on the deal that the UK now negotiates with the EU. Hopefully the country will successfully negotiate continued access to the 500 million people across the EU and European Free Trade Association. How it is going to do that without allowing for the movement of Europeans across its border is going to be interesting. Despite no other country having managed to this so far, Britain’s trade involvement with the continent is substantial and mutually beneficial, so we should see a deal being struck with favourable terms after some serious negotiation.

In the event of Britain not succeeding in its continued membership of EFTA, all is not lost. Currently around two thirds of UK exports are destined for non-EU countries and it is entirely possible that over time the new freedom to negotiate free trade treaties will increase substantially to mitigate any EU shortfall. Of course there are already treaties in place between some of these countries and the EU which will need to be renegotiated by Britain.

Legally, the retreat from Europe shouldn't’t affect private M&A deals where the required documentation is reliant on English law and the exclusive jurisdiction of the English courts. However current and recent M&A contracts ought to be re-examined from a legal perspective in the light of Brexit. That’s because Britain’s withdrawal could be deemed a ‘material adverse change’ and therefore potentially enable a contractual clause to be invoked.

M&A deal flow slowed slightly in the lead-up to the referendum, though only from round mid-May. It ought to be noted that foreign (non-EU) investment into the UK has increased substantially this year over last year. This will pick up again now the referendum is over. The lower pound will certainly make UK company assets more attractive.

British business is generally agile and used to a fast-moving, competitive trading environment and an uncertain political and economic landscape. The legal and regulatory environment is robust and corporate tax rates are low. British creativity and ingenuity continues unabated.

What would Brexit mean for the business for sale marketplace?

June 21st, 2016 by Chris St Cartmail
The European Union: are we in or out? brexit

Britain will make its choice on the 23rd of June. The vote has already become personal, the heated debate is inescapable and the media scaremongering has seen each side giving as good as they’re getting with hyperbole and accusations.

But when it comes to the future of the British economy, is it possible to put emotion aside and make a clear decision as to what’s best for business? And for those in the M&A industry, is it really possible to make a clear case in favour of either side at this point?

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What are you waiting for? It’s a great time to grow by buying another business.

May 30th, 2016 by Chris St Cartmail

We are seeing more private businesses appear on the market again after a short lull. One of the reasons for this is that in the lead-up to the recent Budget there were rumours about that the government may have been about to kick the very useful Entrepreneurs’ Relief into touch. Heaven forbid!

This prompted more than a few concerned business owners to cash their chips before D-Day.

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Solvent business liquidations soar

May 20th, 2016 by Chris St Cartmail

March 2016 saw a record number of UK companies file for voluntary liquidation. There were 2663 solvent companies wound up – over three times the usual monthly rate which has averaged at 768 for the twelve months prior. The last highest month recorded was April 2015 when 992 companies filed.

What could this be attributed to?
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Residential care activities insolvencies up 23 per cent

May 5th, 2016 by Chris St Cartmail

Some interesting analysis on the residential care home market has been carried out by FRP Advisory.

Running against a general cross-industry trend of declining corporate insolvencies, the care home sector has been going through a very rough patch with insolvencies up 23% year on year. We are looking at a staggering 24-fold rise since 2010.

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New Business Sale Report Google Chrome Extension released

April 14th, 2016 by Chris St Cartmail

For those of you using the Google Chrome browser on a PC or Mac, we’ve created a very simple way to let you know about UK businesses for sale and divestment news before anyone else.

Our new Google Chrome Extension installs in seconds into your Toolbar, to let you know at a glance whether there are any new businesses for sale in the industry sector(s) you are interested in.

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