Tax change boosts deals in tough times
Mid-market deals resilient as capital gains tax changes keep transactions flowing
The change to capital gains tax has proved an unexpected boon for private
equity groups who have experienced resilient deal activity despite the credit
crunch.
Research by investment bank Baird showed that over the course of this year
228 deals with a value of less than £500m have been completed.
The Daily Telegraph reports that although this is a 15% fall on the
268 deals completed last year, it shows that deals are still being done.
David Silver, managing director at Baird, said more smaller deals were being
done as business owners rushed to sell their companies before the new CGT regime
with a tax rate of 18% comes into effect in April.
Further reading:
M&A activity in SME sector up 500%
Private takeovers to top £5bn before CGT
change