It can be tempting to assume that the sale of your tourism or hospitality business will generate the money you need to achieve a financially secure retirement but new figures show that this is not always going to be a viable option at the time you need it most.
The latest data from the Office for National Statistics (ONS) shows that the value of company sales have fallen sharply during the latest quarter for which figures are available. Figures for January to March 2019 show that the overall value of domestic mergers and acquisitions (M&A) fell to £1.4 billion from £5.6 billion in Quarter 4 2018 – a decline in M&A activity of 75 per cent.
The ONS data shows that M&A activity in the UK is highly volatile across recent quarters, in terms of both the value and frequency of sales, possibly as a result of growing uncertainty in the economy.
This means timing is crucial. That is why we recommend that you begin to prepare your tourism or hospitality business for sale at least five years ahead of any final deal to increase its worth, maximise the sale price and minimise any potential tax liabilities.
During the planning stages of a company sale, Lamont Pridmore can help you to:
- Increase the profitability of your business
- Sell off or cease unprofitable activities
- Improve key performance indicators in line with your sector
- Install appropriate systems and procedures
- Develop a senior management team
By planning well in advance there is much that can be done to improve your chances of getting the sale price you desire or even increase the value of the business above your expectations.
A balanced, well developed Life Wealth Plan is also essential alongside any business disposal strategy to maximise your total wealth and income in retirement.
We regularly work with our clients to develop their Life Wealth Plan, helping them to meet their financial, business and personal goals.
This will cover matters ranging from retirement and succession planning through to investments and life cover.
It is all too easy to focus all your attention on the financial affairs of your business, without taking account of your own finances. Our Life Wealth Plan provides a structured way to think about your own finances, those of your business and how they affect each other over the long term.
Further information about Lamont Pridmore is available by telephoning 0800 234 6978 or emailing firstname.lastname@example.org