Estate agents considering a sale or merger are being urged to initiate their plans sooner rather than later to capitalise on the traditionally active Q1 acquisition period.
Atomic Consultancy, the acquisitions firm led by Lucy Noonan, has revealed that the first quarter consistently outpaces other times of the year for business sales across the UK, making it a prime window for securing deals.
Atomic Consultancy’s decade-long analysis of acquisition activity (Q1 2014 – Q4 2023) reveals Q1 as the peak period for domestic, inward, and outward acquisitions.
On average, the first quarter sees 3,675 acquisitions, including 1,751 domestic, 1,272 inward, and 652 outward transactions.
PREPARE NOW
Trailing Q1 is Q4, with an average of 3,518 acquisitions, followed by Q3 (3,402) and Q2 (3,383), highlighting the urgency for property business owners to prepare now to secure favorable outcomes in the most active quarter of the year.
The acquisition process typically spans 16 weeks, provided all financial and operational documents are in order.
However, delays can arise if key elements are incomplete, particularly as demand for corporate solicitors surges during this high-activity period. Atomic Consultancy advises business owners to engage with legal counsel and prepare their financial records ahead of the Christmas break to avoid setbacks.
BE PREPARED
Essential preparations include accurate accounts detailing cash flow, forecasting, and financial analysis.
Businesses will also need comprehensive records of assets and liabilities and complete and up-to-date corporation tax figures.
With Q1 approaching and corporate solicitors likely to be inundated, timing is critical for those seeking a smooth and efficient acquisition process.
For estate agents eyeing an exit, acting now ensures they can align with the most lucrative period for business sales, while mitigating potential delays.
THE NEXT CHAPTER
Noonan says: “As we approach another year end, there will be many business owners who may be considering what the future holds and if now is the time to start that next chapter in life.
“Of course, like many things at this time of year, it’s easy to postpone any actual actions required until the dust has settled on the festive period.
“However, if an exit is a high priority, now is the time to act and that’s because, historically the new year often brings a flurry of activity with respect to business acquisitions, with the most deals done during the first three months.”
“Acquisition is a moment of real pride and success for business owners, but it’s a mammoth undertaking involving all sorts of rules, regulations, and pitfalls.”
