Brexit result presents opportunities for acquisitions

The Brexit referendum result to leave the EU could offer up opportunities for acquisitive businesses, the head of one of the UK’s leading independent restructuring experts has said.

Carl Jackson, managing partner and founder of Quantuma LLP, said that economic uncertainty following last Thursday’s historic EU referendum vote could accentuate the underlying problems in some businesses.

“Whether the UK slips into recession remains to be seen but with the current uncertainty prevailing there is the potential.

“We are likely to see restrictions on bank lending and potentially significant job losses, particularly in the City of London.

“In the longer term there may be a negative impact on companies who sell into the EU and the potential for future restrictions. The question will be whether they are able to replace lost turnover through other markets,” he said.

Turning to the UK market he said that there would be many threats but also opportunities for strong businesses prepared to be decisive.

“Those that have been having a rough time surviving could experience increased cashflow problems and restricted credit lines which will threaten their survival,” he said.

“There could be many viable businesses out there that are under-capitalised or poorly managed and these may represent real opportunities for growth by acquisition or merger.”

He urged company owners to keep their ear to the ground in their industry sector.

“The bush telegraph in most business sectors is pretty fast and the old saying ‘there’s no smoke without fire’ can quickly turn out to be true.

“You should avoid rushing in but a third party approach from an independent advisor could reveal a deal to be done,” he said.

He stressed the importance of taking independent financial and legal advice.

“You need advisers who can stand back from the deal and see the wood for the trees. Is this a real opportunity, or a black hole into which you could pour a lot of money for little return – possibly even endangering your own business?

“Obviously where there are skilled staff, work in progress and a good customer base, these are factors that should be considered,” he said.

Quantuma was set up in 2013 by Carl Jackson and has quickly grown to be one of the UK’s leading independent restructuring consultancies.

With 12 partners and six offices in the south of England, it has rapidly grown to around 90 staff and developed specialist sector knowledge in key areas such as property, the care industry, retail and the legal sector, with an increasing number of high profile appointments.