Bigger and Better

If the coronavirus pandemic has taught us anything, it is that we should accept that change is the only constant in business life. Many businesses will be battered and bruised as they limp out of their economic slumbers but the question for all will be “what next?”.

After discussions with many of our entrepreneurial clients, it is interesting to note that a high proportion look at the post pandemic landscape as a clear opportunity for growth. Basic questions come to mind such as “what would make my business stronger?” and “what is holding me back from taking the next step?”.

Our Corporate Finance professionals have recently been working with various clients on a range of acquisition and/or merger opportunities. In many cases, the first step has been to identify businesses, people, assets or key product/service lines which will complement our clients’ existing capacity. Business owners can be very cautious about this type of route, but growth and diversification will be the direction chosen by ambitious, forward thinking owners.

Financing an acquisition can be challenging in difficult economic times, but these days there are many different routes to finance details from vendor loans and asset finance to invoice finance, outside equity investment and traditional bank lending routes. It is often a misconception that lending will stop during times of economic difficulty, but our experience is that lenders are still looking to lend money and the corporate, professional investors are looking for new avenues.

We encourage businesses to consider very carefully whether growth via acquisition might be the answer for them and we will work with those parties to identify and assess the relevant opportunities. To discuss your circumstances, contact our Corporate Finance specialists via corporatefinance@eqaccountants.co.uk or call one of our offices today.