Entrepreneurs sold their businesses in record numbers in 2016 because of growing uncertainty about the British economy, according to Barclays.
Many chose to cash-in rather than risk taking their business to the next level, in a trend that Barclays’ wealth management arm has warned could hit Britain’s long-term economic prospects.
Entrepreneurs and their advisers said the vote to leave the EU and fears that Jeremy Corbyn could take power in a Labour government were among the reasons for the sales.
Sterling’s fall in value since the EU referendum has also attracted overseas buyers looking for bargains.
The Barclays Entrepreneurs Index found that 505 businesses were sold by entrepreneurs last year, which represented a 28 per cent increase compared to 2015, and the highest level since the bank started tracking such activity in 2010.
Barclays counts the number of mergers and acquisitions involving businesses less than five years old.
The trend of entrepreneurs selling businesses may be the result of an uncertain political and economic environment in 2016, which made it difficult for companies to plan ahead and grow, said the bank. [...]
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