Budget 2025: Answering the key questions facing company owners

By David Gardner

The UK Budget 2025 removed much of the uncertainty facing company owners considering the future of their business, providing a dose of long-awaited clarity which will aid decision-making.

To crystallise exactly how the landscape now looks, Dave Gardner, KBS Corporate Finance Managing Director, answered the key questions shareholders should be considering as they plan investment or exit strategies in 2026.

Hi Dave, thanks for joining us. Would you say the Budget has brought some clarity for business owners but doesn’t necessarily make decisions simpler?

The Autumn Budget has finally removed much of the uncertainty that’s been hanging over business owners this year. Clarity is always welcome, but it doesn’t automatically make the decisions ahead any easier. Any changes to CGT structures, EOT relief and Inheritance Tax all interact in ways that will shape shareholder outcomes for years to come. Understanding those interactions and what they mean for your own company sale plans is absolutely essential.

So this is certainly not a time to be tackling a sale on your own or with an inexperienced adviser?

While the overall tax landscape might look steady at first glance, the fine details matter more than ever. Timing, deal structure and how value is distributed across different elements of a transaction can significantly influence the amount a shareholder ultimately keeps. Going it alone or relying on outdated assumptions is simply too big a risk. The right advice ensures every element is considered properly from day one.

In terms of buyers, is there strong demand but even higher expectations?

The market remains active. Investors have capital to deploy, interest rates are easing, and we continue to see strong appetite across many sectors. But buyers are being more selective. They are diligent about the businesses they pursue, and they want clear rationale for value. Having an adviser who understands those expectations, and positions you to meet them, can make the difference between a good deal and a great one.

Is it accurate that old assumptions can now cost real money?

For years, many business owners could rely on well-established planning routes, whether for succession, inheritance or tax reliefs. The new Budget has shifted that landscape. Some of the paths that once made sense may now be less efficient or no longer priority routes. Without carefully reassessing them, it’s easy for value to be left on the table. Early, expert input helps avoid those pitfalls.

A sale isn’t just about the deal, it’s also about the bigger financial picture…

A business sale doesn’t start and end with a valuation. Shareholders care about what they walk away with and what that means for their future, their family and their long-term goals. That’s why the transaction itself can’t be viewed in isolation. The tax position, investment planning, pension strategy and succession decisions all matter just as much as the sale mechanics. Bringing those elements together is increasingly important in light of Budget changes.

And our Group gives clients access to a broader, joined-up support system…

One of our greatest strengths at KBS Corporate is the ability to draw on specialisms of the wider K3 Capital Group. When shareholders need additional specialist input around tax planning, long-term wealth strategy or financial advice, we can introduce them to trusted experts within our Group. We can ensure every shareholder receives properly rounded guidance, with all aspects of the transaction and its outcomes working together.

Every shareholder’s situation is different. Does that also apply to the advice we give?

No two business owners sell for exactly the same reasons. Some are thinking about retirement, some about supporting family, and others about reinvesting or reshaping their portfolio. Whatever the motivation, our role is to ensure the deal structure aligns with those personal goals. The Budget has only reinforced the importance of tailoring advice, not just around the sale itself, but around the life it enables afterwards.

EOTs are still relevant, but does that route now need a more careful assessment?

Employee Ownership Trusts haven’t disappeared from the landscape, but the change in relief means they are no longer the automatic choice for some shareholders. They still offer extremely meaningful advantages in the right situations, but now they must be weighed up more carefully against traditional trade, investor-led or strategic sale routes. Our job is to help shareholders understand the adjustments and make informed decisions based on their priorities.

More than ever, is now the moment to plan ahead, not wait and react later?

With uncertainty out of the way, business owners have an opportunity to revisit their corporate structures, model different timing scenarios and assess how the changes affect their long-term plans. The best outcomes almost always go to those who prepare and speak to an adviser like KBS Corporate early, rather than those who make decisions under pressure. This is an ideal moment for shareholders to get ahead and put themselves in the strongest position possible.

How do you reassure shareholders that they can be supported?

What matters most to many of the clients we work with is simply knowing they are not navigating this alone. A business sale is a major milestone and often a once-in-a-lifetime decision. Our experts guide shareholders through every stage of the journey, and through the wider K3 Capital Group we can help to ensure the tax, wealth and long-term financial implications are just as well managed as the sale itself. In a period of change, that joined-up support is invaluable.

If you are considering exiting your company or seeking new investment, contact us for a confidential discussion in which one of our experts will outline the options available.