Business confidence in the UK was spurred to new heights this week, as the government announced the continued recovery of the country’s manufacturing sector. What does this strengthened economic position mean for you, if you are looking to sell your business?
Economic Recovery Is Great for Selling Businesses!
At RTA Business we exist for one purpose. If you are looking to cash in on your hard earned company by selling it, we are here to make it as quick, easy and profitable as possible. Part of that service involves keeping you up to date on the state of the country’s economy, so you know when you’re likely to see the highest return from selling your business.
That’s why we’re increasingly finding that now is a pretty fantastic time to sell. The UK economy is in full-fledged recovery, as evidenced by a general trend of strong data showing the emerging strength of the country’s financial situation. This has resulted in a sharp rise in business leader confidence, a key motivation by for the formation of the expansion plans that often persuade buyers to get out and purchase your business to increase their own profit margins.
RTA Business on the Direct Correlation
As previously mentioned, the trajectory of economic strength is measured by business data and one of the strongest indicators is manufacturing figures. This is because of the heavy role manufacturing plays in this country’s business climate. There is a direct correlation.
Specifically, according to sources such as BBC News, UK factory output has continued to enjoy one of its strongest growth periods for the past 22 years last month, according to the Markit/CPS UK Manufacturers Purchasing Index (PMI). Although it slightly slipped from 57.3 to 57.0, it stayed well above the 50 reading on the index that indicates growth.
Markit Comments on the Positives of Manufacturing Growth
This means that the PMI has indicated strong manufacturing growth since March last year, which has provided some real positives, according to industry expert, Rob Dobson, a senior economist at Markit. He spoke to the BBC on the issue.
Dobson said: “Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical. On those scores the latest survey provides some real positives.”
At RTA Business we would have to agree, and further argue that this will no doubt increase business leader confidence, as trends indicate a robustness to the market that is in no danger of slowing down any time. It really is a good time to sell your business!
RTA Business believes that the announcement of ‘pro-work, pro-business’ measures in this year’s Queen’s Speech, could be hugely beneficial for you if you are looking to sell your business right now.
RTA Business: Business Sales Experts
Here at RTA Business we’re dedicated to one purpose – helping you make a huge profit off of the sale of your business. We use our years’ worth of experience in the game not only to prepare you for the time you put your company up for sale, but to see it through, and make sure you find the right buyer for you.
That experience has taught us one thing about government announcements of ‘pro-business’ measures; they are what they say they are. Here at RTA we have no doubt that the latest government plans will lift your bottom line and make your business look even more attractive to a potential buyer.
A ‘Pro-Business’ Queen’s Speech
The Queen’s Speech is basically where the government outlines the major reforms they are committed to pushing through that year, and this year’s Queen’s Speech included the announcement of a host of bills that are designed to make it easier for small businesses to access finance, as well as remove the procedural hurdles that often hamper such efforts.
Specifically, the aptly titled Small Business, Enterprise and Employment bill will outline plans to provide the owners of small businesses with a more competitive chance of securing a piece of the £230 billion worth of annual public procurement contracts offered to companies by the government.
A ‘Pro Workers’ Queen’s Speech
Alongside this announcement the government also released plans to tackle zero-hours contracts and national minimum wage abuses, which are controversial issues that have hit the headlines recently and angered workers across the country.
Finally they also spoke about plans to make some childcare regulations more flexible, introduce a corporate ownership bill that will make it easier for the government to penalise rogue directors as well as plans to start a public register for companies’ beneficial shareholders.
RTA Business Comments
It’s clear to see why the ‘pro-business’ elements of the Queen’s Speech will benefit you if you are looking to sell your business; it will give you a chance to secure the financing you need to lift your bottom line and make your company more attractive to a potential buyer. However we would also argue that the worker rights regulations will be beneficial as well, as a happy workforce is a productive one!
News sources are reporting this week that the UK inflation rate has risen for the first time in ten months. What does this mean for the country’s economy and what could it mean for you if you’re thinking of selling your business right now?
The Importance of Inflation Rates
Inflation rates are a pretty important benchmark for the business community. They’re basically the percentage that prices are rising above wages. Generally, if an interest rate rises, it means that the public are paying more for goods and services, which could either be good or bad for business, depending on the circumstances.
For the past ten months, inflation rates have either stayed flat or have fallen due to a number of factors. These include the economic recovery, the interest rate policy put in place by the Bank of England (holding their benchmark interest rate at 0.5%) and wider gains in the global economy.
Inflation Rise by 0.2%
However, it is now being reported that the Office for National Statistics (ONS) has announced that the national inflation rate has risen for the first time in ten months according to the Consumer Prices Index (CPI) – the country’s main measure of inflation, which charts it based on commercial performance. Specifically, the ONS reported that it rose to 1.8% in April, a 0.2% jump from the 0.6% recorded for national inflation in March.
According to the national statistics expert, inflation has risen due to higher transport costs, including air and sea travel. However, they also noted that inflation measured by the Retail Prices Index (RPI), the country’s other tool for measuring inflation, stayed level. They also suggested that rats on the CPI were likely pushed up due to the costs traditionally attached to the Easter Holidays, which were later than usual this year.
Furthermore, the ONS went on to note that travel costs were pushed up by a hike in petrol prices, but that these rises were offset by a fall in food prices, and that despite the rise, inflation still sits below the 2% target set by the Bank of England.
RTA Business Comments
So what does this mean if you’re looking to sell your business? At RTA Business, we recognise that the strength of the recovery means it’s a fantastic time to profit off the sale of your business and the fact that inflation still sits below 2% means that this hasn’t changed.