Sir Keir Starmer’s resignation as Prime Minister has created a period of political uncertainty. As a result, many business owners may need to review their succession and exit plans sooner than expected.

Attention has already turned to Labour’s leadership contest. Andy Burnham is widely regarded as one of the leading contenders and could play an important role in shaping future economic policy.

While no formal proposals have been announced, discussion around wealth taxation continues to gather momentum. In particular, many commentators expect further debate around Capital Gains Tax and how it may apply to business owners in the future.

For founders whose business represents their largest asset, any significant tax changes could have a direct impact on eventual sale proceeds.

Why potential tax changes matter

Business owners often spend decades building value. However, that value is only realised when a sale takes place.

If Capital Gains Tax rates increase in the future, owners could retain less of the proceeds from a transaction. Consequently, retirement plans, investment strategies, and succession decisions could all be affected.

This does not mean owners should rush into a sale. However, it does highlight the importance of understanding available options and preparing early.

The UK financial planning market remains active

Despite political uncertainty, buyer demand remains strong across the financial planning and wealth management sector.

Private equity-backed firms, consolidators, and strategic acquirers continue to seek high-quality businesses. However, buyers have become more selective over the past six months.

Today, buyers focus on more than revenue and recurring income. They also assess adviser continuity, organic growth, client demographics, and cultural fit.

As a result, some businesses attract significant interest while others struggle to gain momentum.

Preparation is becoming increasingly important

The strongest outcomes typically come from businesses that prepare well in advance.

Buyers want firms they can understand quickly, integrate efficiently, and grow successfully after completion. Therefore, business owners should understand how buyers view their business long before they enter a transaction process.

Early preparation also provides greater flexibility. Owners can address weaknesses, improve value drivers, and choose the right timing for a future exit.

Understanding your position in today’s market

At Gunner & Co, we offer confidential one-to-one market overview meetings for business owners considering their long-term options. Click here to arrange a complimentary market overview and gain a clearer understanding of your options in today’s market.

During these meetings, we discuss current buyer activity, valuation trends, succession planning considerations, and the factors that influence deal outcomes.

No preparation is required. There is also no expectation that you are looking to sell.

Instead, the objective is simple: to help you understand how your business would be viewed in today’s market and what steps could improve future outcomes.