The flurry of deal activity in the first half of last month was in advance of the anticipated reduction in Entrepreneurs’ Relief, which indeed materialised with the Budget announcement in March. As such, we had already expected that March would be a busier month for deals than average.
What most of us had not anticipated was the major fallout from the coronavirus pandemic. The environment in which we are operating has moved at an unprecedented pace, from reduced staffing and enrolment to closure of all nurseries expect for children of key workers and vulnerable children.
Essentially, most deals in train have had to be put on hold or have their completion dates extended. Most operators who were in sales processes are focusing on just keeping their businesses afloat (there has been so much uncertainty in attendance, fees, funding, staffing and the rules around furloughing), operators who were acquiring are now focused on cash conservation, and investors are unable to undertake their due diligence.
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