News

As we move towards the end of 2024, the mergers and acquisitions (M&A) landscape in the North-West of England and Yorkshire continues to be shaped by a significant trend: retirement sales. For many business owners, this year represented the perfect opportunity to transition out of their businesses and into retirement, driven by favourable market conditions and a growing pool of eager buyers. At Frazer Hall, we specialise in facilitating sales of businesses with turnovers between £2m and £20m, and retirement sales have once again emerged as a key driver of activity across a wide range of sectors.

Retirement Sales: A Defining Feature of 2024

Retirement sales have become a cornerstone of the 2024 M&A market. With a large cohort of business owners reaching retirement age, many are choosing to sell their businesses to secure their financial futures and enjoy the fruits of their labour. This trend is particularly evident in the North-West and Yorkshire, where family-owned and founder-led businesses form a significant part of the regional economy.

For these owners, selling their business is often a deeply personal decision. It marks the culmination of years of hard work and dedication, and finding the right buyer to carry on their legacy is a top priority. At Frazer Hall, we have been proud to support many of these owners through the years, helping them navigate the complexities of the sale process and achieve outcomes that align with their personal and financial goals.

Key Drivers of Transactions in 2024

Several factors have contributed to the increased number of transactions this year:

1. Strong Valuations and Market Confidence: Despite ongoing economic uncertainties, businesses with solid financial performance, loyal customer bases, and growth potential continue to attract strong valuations. This has given owners the confidence to exit at a favourable price.
2. Increased Buyer Appetite: The market has seen robust demand from strategic acquirers, private equity firms, and first-time buyers. Many of these buyers are actively seeking well-established businesses with proven track records, making retirement sales an attractive proposition.
3. Succession Planning Challenges: For many family-owned businesses, finding a suitable successor within the family or management team remains a challenge. Selling to an external buyer has often been the most practical and rewarding solution.
4. Tax and Regulatory Considerations: Changes in tax regulations and the broader economic environment have also influenced retirement sales. Many owners are keen to capitalise on current conditions to maximise their returns and ensure a smooth transition.

Sector-Agnostic Opportunities

Sales and acquisitions in 2024 have been a cross-sector phenomenon, reflecting the diverse economic base of the North-West and Yorkshire. From manufacturing and engineering to professional services, hospitality, and retail, business owners across a wide range of industries have chosen to sell as part of their retirement plans.

We have advised on the sale of several long-established businesses where the owners were looking to retire after decades of operation. Similarly, in the professional services sector, accountancy practices, legal firms, and consultancies have seen a wave of retirement-driven transactions as senior partners seek to step back.

Navigating the Retirement Sale Process

Selling a business to fund retirement is a complex and emotional journey, requiring careful planning and execution. At Frazer Hall, we understand the unique challenges that retiring owners face and are committed to providing tailored advice and support. Our process focuses on:

• Preparation: Ensuring the business is positioned to achieve its maximum value, including financial restructuring, operational improvements, and strategic positioning.
• Identifying the Right Buyer: Matching the owner with a buyer who shares their vision for the future of the business, whether that’s a trade buyer, private equity firm, or first-time acquirer.
• Structuring the Deal: Balancing the owner’s financial needs with the buyer’s requirements to create a win-win outcome, including earn-outs, deferred payments, and other flexible terms.
• Ensuring a Smooth Transition: Helping to manage the handover process to ensure continuity for employees, customers, and suppliers, and safeguarding the legacy of the business.

Looking Ahead to 2025

As we move into 2025, we expect retirement sales to remain a key driver of M&A activity in the UK. The strong SME base, combined with the ongoing demographic shift, suggests that many more business owners will be considering retirement-driven exits in the coming months and years.
For buyers, this presents a wealth of opportunities to acquire established businesses with strong foundations and growth potential. For retiring owners, it offers the chance to secure their financial future and pass on their legacy to capable hands.

Conclusion

At Frazer Hall, we are proud to have played a role in helping many business owners achieve successful exits and embark on the next chapter of their lives. As we look to the future, we remain committed to supporting retiring owners and ensuring that their businesses continue to thrive under new ownership.

If you are considering a retirement sale or would like to explore your options, please don’t hesitate to get in touch with the team at Frazer Hall. Together, we can help you achieve a successful and rewarding exit.

Stephen.frazer@frazerhall.com
Graham.niven@frazerhall.com
Joe.frazer@frazerhall.com