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Press ReleaseOctober 2007: This could be the right time to sell your business, says UHY Wingfield SlaterThere’s never been a better time to sell your business, according to UHY Wingfield Slater, one of Sheffield’s leading accountants and business advisers. There is an increasing number of owner-managers who are considering selling their companies due to the favourable valuation and taxation climate. In fact, says UHY Wingfield Slater partner Derek Hemmingfield: “Private companies are currently being sold on extremely high multiples of their post tax profits, making it one of the most attractive times to sell a private business in recent history.” Private companies are selling at an average of 14.8 times their earnings, the latest Private Company Price Index (PCPI) shows. “If you compare this to the 15.8 times earnings that the stock market currently values companies at, the gap between private company and stock market company earnings is at a historically low level,” said Derek Hemmingfield. Just five years ago companies listed on the stock market were being valued at an average of 22.4 times their profits compared with just 12.2 times for private company sales. “With private company valuations at their highest levels for a decade, if you feel that getting a stock market listing is not for you, then the alternative of putting your business up for sale is more tempting than ever.” In the latest UHY Wingfield Slater Financial Monitor advisory newsletter, owners -managers can learn about a number of key issues to consider before deciding to sell and potentially cash in on the current high valuations. The newsletter is emailed to UHY Wingfield Slater clients and is also available for anyone to download from its website: www.uhy-wingfieldslater.com . |
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