Selling a business in a high interest environment

Selling a business can be a complex process, and when combined with the current high interest environment, you may be concerned about achieving a successful sale.

We are finding that despite the current economic climate, buyer appetite remains strong.

The low interest rates we have seen in recent years were something of an anomaly – this isn’t the first time interest rates have been at their current level, and from experience, interest rates alone normally aren’t enough to delay the decision to sell or to stop those who are acquisitive.

For acquirers who may raise funds through debt financing, increasing interest costs can affect lender’s risk tolerance, meaning a greater emphasis on due diligence and increased scrutiny of buyer’s forecasts and cashflow modelling. Despite this, lenders of all types are still willing to support M&A transactions.

What does it mean for a vendor hoping to sell? They need to adapt and position their business whilst maintaining an open mind.

By focusing on preparation well in advance of the sale, ensuring optimal timing, promoting to a wider spread of buyers, and offering flexible deal structures, business owners should be well-placed to navigate the challenges and capitalise on the opportunities presented by an active market.

Our advice - engage with experienced professionals from the outset who will guide you through the intricate process of valuation, negotiations and due diligence, whilst identifying any issues which may impact buyer confidence and crucially, ensure value is protected throughout the process of the transaction.

In a high interest environment, their insights are invaluable for positioning your business competitively and ensuring a successful sale.