New analysis from Atomic Consultancy, the acquisition specialists founded by Lucy Noonan, has revealed that property professionals considering an exit strategy should start preparations before Christmas to capitalize on the busiest time for business acquisitions – the first quarter of the year.
Atomic Consultancy has examined the patterns of domestic, inward, and outward acquisitions of UK businesses over the past decade (Q1 2014 to Q4 2023), uncovering that Q1 consistently records the highest number of acquisitions across all sectors.
On average, Q1 has seen 3,675 acquisitions annually, with activity broken down as 1,751 domestic acquisitions, 1,272 inward acquisitions and 652 outward acquisitions.
Following Q1, the second busiest period is Q4, with an average of 3,518 acquisitions, followed by Q3 (3,402) and Q2 (3,383).
BE PREPARED
For property business owners eyeing an exit, the message is clear: preparations for a Q1 sale need to begin immediately. The average selling process takes 16 weeks, assuming all requirements are in order. Delays can arise from various issues, which sellers should address early.
The high demand for solicitors during Q1 means it is essential to engage one before the Christmas period.
Properly prepared financial records are crucial to avoid extending the acquisition timeline. This includes cash flow statements, financial forecasts, asset and liability records, and accurate corporation tax figures.
NEW CHAPTER
Lucy Noonan says: “As we approach another year-end, many business owners may be reflecting on their future and whether now is the time to start a new chapter. It’s easy to delay decisions during the festive period, but if an exit is a priority, the time to act is now.
“Historically, the first quarter of the year sees a surge in acquisition activity, making it the ideal time to secure a sale. By setting the wheels in motion before Christmas—engaging a great solicitor and acquisition advisers—you can take the festive break to carefully consider your options. Whether you proceed immediately or decide to hold off, you’ll be in a strong position to move forward when the time is right.
“Acquisition is a moment of real pride and success for business owners, but it’s a mammoth undertaking involving numerous rules, regulations, and potential pitfalls.”
