Keeping positive can be a challenge during a pandemic, but it’s vital that businesses look ahead to the future and the opportunities that 2021 holds.
Although the economy is flirting with a second recession and some sectors are struggling under nationwide restrictions, the area of mergers and acquisitions is looking promising.
An ideal opening
For businesses that are well-prepared and unafraid to take the leap, the current economic situation means there are plenty of M&A opportunities available.
If the deal market continues to move, British businesses will remain attractive to overseas investors. Making strategic or opportunistic acquisitions while prices stay low, could even accelerate growth plans.
Which sectors are performing well?
Certain sectors that lend themselves to our current climate, such as pharmaceuticals, technology, PPE and MedTech, have all been performing well over the last year, even with the uncertainty caused by Brexit.
Due to this uncertainty, some international buyers may be waiting to see what the post-Brexit landscape looks like before making a move, but many others are still showing an interest in UK acquisitions.
Strategising for the future
Whilst the present remains unstable, it might be difficult to think about future strategies, but it is important to do so.
Industries hit hardest by the pandemic should continue to use the financial support available to them, including the furlough scheme, CBILS and Future Fund. However, they must keep on top of any changes to the current schemes and be aware of when they are set to end.
For those facing less challenges, they should consider whether they are in a position to expand and invest. Many companies are in need of a buyer or strategic partner, and with valuations being difficult to carry out accurately at present, a host of potential investment opportunities have been opened up.
With the changes to Capital Gains Tax (CGT) still looking likely, a short-term deal rush may be on the horizon. As such, businesses and business owners should also be assessing whether they can take advantage of this.
In any market there are always investment opportunities to be had. So, although it may be some time before confidence returns, there’s much to be gained from businesses taking a positive approach to 2021 and readying themselves for growth.
2021 holds plenty of unknowns, but it is also a year for potential and there are many reasons to remain positive. If you have any questions or concerns about issues that may be affecting your business, get in touch and the relevant team will aim to reply to your query within two hours.
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