I had expected our restructuring and insolvency activities at Quantuma to be busier than they have been, but all indications are that they will pick up over the next two years. Our forensic accounting service area, which is driven by legal disputes, has remained steady.
What is interesting is that our mergers and acquisitions advisory work was very quiet at the start of the pandemic but has picked up over the last few months. This uptick in activity has been driven by private equity firms that are sat on a lot of cash looking for a bargain.
Given that capital gains tax (CGT) has a fair chance of going up in the Spring Budget, effective in the next financial year, entrepreneurs have a choice to make. If the Chancellor Rishi Sunak looks to regain some of the state’s enormous financial outlay by equalising CGT with income tax, is it better to sell a company now or hold on for several years?
Watch my interview with James Ashton to find out more about my views on market activities.
A fresh perspective
I do not doubt that there are tough times ahead. But there are opportunities too. That is why Quantuma has developed a comprehensive programme that focuses on building financial fortitude. It is time for business leaders to be courageous, brave, decisive and honest, with their employees as well as their commercial partners.
Even in the most distressed sectors there are opportunities for bold entrepreneurs who can withstand a prolonged downturn by managing their business tightly.