Business Sale Trends for 2025

After selling my AM Bid business in July 2023, I worked a planned transition exit year, then launched Business Sale Basecamp in July 2024 to help company owners get their businesses (and themselves) ready for a business sale, transition and exit.

So, 6 months in, what have I found?

• There is strong interest amongst business owners in getting help with preparing their company for sale
• 2024 has seen some big changes – in the same week that I started Business Sale Basecamp, the UK had a General Election which saw a large Labour majority. The new Government trailed a Budget for 30^th October, so a number of months of uncertainty followed and some business owners who were in the throes of selling were keen to conclude their sale before the budget; others who had started down the road wanted to wait until they saw what changes the Budget was bringing in
• The Budget has brought substantial changes for business owners especially around their tax position:
• Capital Gains Tax (CGT) which is paid on business sale – the Lifetime Business Asset Disposal Relief (formerly Entrepreneur’s Relief) changes from 10% on the first £1million to 14% in April 2025; and to 18% in April 2026; CGT on the balance above £1million was raised from 20% to 24% immediately on Budget Day. There are also changes to how businesses, pensions and farms are treated for Inheritance Tax purposes – the majority of changes resulting in more taxes to be paid than previously  
• Significant increases to both Employers National Insurance and the National Minimum Wage, making business operating costs higher – these changes are effective from April 2025. Businesses will be taking some big decisions in the new year around whether to expand or reduce fixed costs, especially if they think there is limited scope to increase their prices. Of course, higher operating costs decreases profit which will usually reduce business valuations. You will also need to add increased employment legislation rights into the mix – although these generally should not be too much of a concern to well-run businesses who want to do the right thing by their people.
• November saw the election of Donald Trump in the US. He takes up the presidency on 20^th January. Trump may impose tariffs on imported goods and, if so, this could be 20% tariffs which would be a big hit to any companies exporting their goods to the US. Some analysts say the economic impacts could be similar to Brexit.
• Many business owners who are thinking about selling are telling me that they are going to use what is for most people a 2-week festive break to do some hard thinking about what is really important to them and whether 2025 could the year that they consider selling their business. So, at Business Sale Basecamp, we are expecting a busy time from January!

So, what do I think the key business sale trends will be in 2025? I would now like to share my take on 9 of the key business sale trends for 2025.

1. Taxation – There is no doubt that the tax increases that are coming (and who knows, there could be more in the future given the uncertainty of the world and the economic pressures in the system) will see some owners heading for the exit door before the higher tax rates kick in. Expect to see another rush to conclude deals before 5^th April 2025, and then again before 5^th April 2026.
2. Generational Changes – The youngest of the ‘baby boomer’ generation is now 60 and many business owners are in their 60s, 70s and even 80s. At one time, they may have just passed the business on to a family member, but younger people have seen how hard their parents and grandparents have worked and generally want a better work/life balance. Also, many younger people want to work in tech-based or digital businesses so more traditional businesses e.g. in the construction, engineering, manufacturing, retail, hospitality and care sectors are struggling to attract and retain talent.
3. Resilience – Some business owners are running out of their own personal road in terms of having navigated their business through some particularly choppy waters over the last 5 years i.e. Brexit, Covid-19, inflation and cost of living increases to name the main ones and are not sure they have the stomach for working in what is likely to be a low growth economy for potentially diminishing returns. Of course, this is not how everyone sees things and some business owners will be seeing opportunities where others are seeing risk, and instead will look to grow their businesses over the medium to long-term.
4. Technology – The march of technology continues and things like Artificial Intelligence (AI) and Robotics will have a major impact on many businesses. Of course, there are opportunities for streamlining and creating efficiencies, but many jobs will disappear. Also, some service-based businesses will find that their clients can use technology rather than outsource work to them – think of the change desk-top publishing/printing brought to the print industry; the change that streaming brought to the video rental industry, etc. Many businesses have not got their heads around for example AI, so they risk being collateral damage in the march of technology.
5. ESG (Environmental, Social and Governance) – Companies that are focused on ESG criteria will usually attract more interest than businesses that have not started down this journey. For example, becoming a B Corp business shows that your emphasis is on People and Planet as well as Profit. Eco-friendly policies will help future-proof your business as there is likely to be increasing legislation and regulation in the drive towards Net Zero. 
6. Mergers and Acquisitions – The number of company sales has been lower over the past 5 years (no doubt due to all the seismic changes due to living in a Volatile Uncertain Complex Ambiguous world) than it was in the previous 5 years. However, there is money in the markets (from company balance sheets, private equity houses and family offices) to finance company sales, so I would expect that M&A activity in 2025 will increase due to some of the trends I have already described. Some of this activity will be in what will be perceived as sectors with high growth potential e.g. technology & IT; healthcare and pharmaceuticals (think ageing population); financial services (fintech is bringing transformational change); renewable energy (wind power; heat pumps, EV technology); to name a few.
7. Overseas Interest – We are seeing an increase in overseas buyers especially from the US, the EU, China, Japan and Canada to name the main countries that purchase UK-based businesses.  
8. Sale Options – There are a number of options to achieve a sale including a Trade Sale to a competitor or someone in an adjacent market; a VIMBO (a vendor-initiated management buyout) or a more traditional MBO; transfer to an Employee Ownership Trust (this is increasing in popularity). Sales to private equity houses and family offices which retain the current structures are also an option for some businesses e.g. for family members who wish to stay on in the business. There are also business brokers who can be engaged to sell your business, however I would suggest some caution here as some make most of their money from retainer fees as well as sales commissions. Many businesses advertised through this route do not in fact sell. Instead, Business Sale Basecamp helps to get your business ready for sale … I did this with my business AM Bid and without using a broker, I received 4 approaches from businesses wanting to buy which resulted in 3 offers.
9. Business Sale Readiness – I was speaking to one serial business buyer on Monday – he said that 9 out of 10 businesses he speaks to are not ready for sale. The reasons he gave will likely be familiar – overdependence on the owner; systems and processes not sufficiently in place; overreliance on a few key customers; probably wouldn’t get through due diligence; to name some. So, these are all things that we at Business Sale Basecamp can help you with. Getting external assistance from someone who has been on the journey can help you achieve an optimal selling price. It really is never too early to start thinking about your business sale … and getting a Business Sale Readiness Audit can be enormously help in terms of Business Growth Strategy and Risk Mitigation. 

So, will 2025 be the year that you get your business sale ready? It may  even be the year that you will sell your business. Don’t leave it too late –  some business owners have suffered as they have passed up a good and  fair deal whilst they wait for an imaginary perfect deal in terms of  valuation price and exit terms. 

In a rapidly changing world, if you have any reason to believe that your  business could start declining, then now could be the time to sell. Also,  life itself is uncertain – you want to sell at a time when you still have the  health to enjoy more time for yourself and with your family and friends.

If you have enjoyed this article, please reach out to me to arrange a  free 30-minute no obligation Teams call when we can discuss your business, your sale aspirations and the services provided by Business Sale Basecamp.

e: andrew@businesssalebasecamp.com