What 2024 Taught Us About M&A — and What It Means for Selling Your Business in 2025

December 2, 2024

 

What 2024 Taught Us About M&A — and What It Means for Selling Your Business in 2025

 

As 2024 draws to a close, this has been a year of significant political and economic change, both in the UK and internationally. For business owners considering selling their businesses, these shifts present both opportunities and challenges that require careful navigation.

We have been closely monitoring how the significant political developments of late have shaping the mergers and acquisitions market, with the Labour Party’s victory in the UK general election, followed by the new government’s latest budget and Donald Trump’s return to the US presidency standing out as key drivers influencing buyer sentiment, valuations, and deal activity.

 

Here, we explore the implications of these events and what they mean for business owners planning an exit in 2025.

 

1.Labour’s Win: What It Means for UK Sellers

The Labour Party’s victory in the UK general election has guided in a new wave of fiscal and regulatory changes, many of which are designed to prioritise economic growth and sustainability. Labour’s policies on business taxes, public spending, and green investment are expected to shape the economic environment for years to come. While some businesses may face increased regulatory scrutiny or changes to corporate taxation, others – particularly those in renewable energy, healthcare, and infrastructure – stand to benefit from enhanced government backing.

Implications for Sellers:
Labour’s focus on sustainability and innovation could drive significant interest in businesses aligned with these priorities, creating more competition for assets in these sectors and increasing valuation multiples.

 

2.The UK Budget: A Focus on Growth and Innovation

The UK government’s 2024 budget introduced measures aimed at driving economic growth and encouraging innovation. Key highlights include incentives for businesses investing in technology, renewable energy, and workforce development, alongside revised thresholds for capital gains tax. These changes are likely to influence buyer priorities and valuations, particularly in high-growth sectors.

Implications for Sellers:
Understanding how budget policies affect your sector and preparing your business accordingly can significantly enhance its appeal to buyers. Increases in capital gains tax will impact how business owners structure their exits and early planning as always will be critical to mitigating these tax implications and maximising value.

 

3.Trump’s Return: Implications for Cross-Border M&A

Donald Trump’s re-election as US president has brought renewed attention to policies favouring deregulation, domestic investment, and tax cuts. While this may stimulate economic growth in the US, it could also lead to increased scrutiny of foreign acquisitions and stricter trade policies. For UK businesses with a US presence – or those considering selling to US buyers – this dynamic creates both opportunities and challenges.

Implications for Sellers:
The US remains one of the most active M&A markets globally, and Trump’s business-friendly agenda could increase deal activity. However, navigating cross-border transactions will require a careful understanding of tax implications, foreign investment regulations, currency volatility and certain other macroeconomic factors.

 

Looking Ahead: Why 2025 Could Be a Pivotal Year

The convergence of Labour’s pro-growth policies, Trump’s influence on global markets, and favourable sectoral trends creates a unique environment for M&A in 2025. Buyers remain active, but the market is increasingly selective, favouring businesses that are well-prepared and aligned with market dynamics.

For business owners, the key takeaway is clear: early preparation is essential. From addressing potential risks to highlighting your business’s value drivers, taking a strategic approach now can ensure you achieve the best possible outcome.

 

Partnering with Bluebox: Your Roadmap to a Successful Sale

At Bluebox, we understand that selling a business is one of the most important decisions you will make. Our tailored approach focuses on ensuring your business is positioned to thrive in a competitive M&A market, whether that means adapting to new political realities or leveraging sector-specific opportunities.

With 2025 on the horizon, now is the ideal time to take the first step. Contact us for a confidential discussion and discover how Bluebox can help you achieve your ambitions.

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