Corporate Finance June newsletter
Dear All,
Another busy month has passed by for the CF team. Here’s a quick round-up of what’s been happening, along with some insight on the forthcoming changes to Business Property Relief and how they may impact succession planning for our clients.
Affinia ranked No.2 for deal volume in Experian’s East of England Q1 2025 M&A review
For anyone who missed our LinkedIn post, we were delighted to be ranked No.2 in the Experian Q1 2025 M&A review, above some prominent advisers in the market. Experian’s M&A review is a highly respected benchmark within the industry, providing a comprehensive analysis of deal activity across various sectors and regions. Our prominent position reflects the dedication of our M&A team and our commitment to delivering exceptional results for clients navigating complex transactions. 
We’re very proud of the work of our team in helping us to achieve this recognition. A big thank you to all, including our tax team who provide invaluable support to us in CF.
Read more here: Affinia Achieves No. 2 Ranking for Deal Volume in Experian’s Q1 East of England M&A Review | East & South East | Affinia
Another successful transaction completed
We recently supported a leading carpentry and joinery sub-contractor, founded in the late 1980s, in their acquisition of a portable toilet hire business.
Our role involved comprehensive support, from initial negotiations and deal structuring to financial due diligence and review of the Share Purchase Agreement. We also provided guidance on the commercial aspects of the transaction, ensuring our client had the confidence and clarity to successfully execute this acquisition. This move marks a significant step in their growth journey, diversifying their services beyond their strong presence in Suffolk, Norfolk, Cambridge, Essex, Bedfordshire, Hertfordshire, and East London. Read more on this deal here: A Strategic Acquisition in the Construction Sector | East & South East | Affinia
We have some more deals likely to complete this month, so watch this space for more updates!
Changes to Business Property Relief and the impact on succession planning
Current legislation includes Business Property Relief (BPR), which provides 100% relief on qualifying assets at the time of death. This means that these qualifying assets can be passed on without incurring Inheritance Tax (IHT). For many owner-managed businesses, the succession plan has traditionally involved retaining assets, such as shares in trading companies, and transferring them to family members upon death, as long as this did not adversely affect the company’s trading performance and value. However, starting in April 2026, there will likely be significant changes to this relief.
Under the new rules proposed, only the first £1 million of assets will qualify for full relief; any assets exceeding this amount will only receive 50% relief. With these changes approaching, we need to ensure our clients are aware and help them to consider their options.
What should our clients do to plan for this change?
Gifting shares to the next generation before the changes come into play could be a viable strategy. However, it is essential to consider the tax implications of this approach. Additionally, altering the governance structure of the company could make this option less practical. Business owners should begin reviewing their succession plans to determine how they need to adapt. This review may involve stress testing various scenarios and conducting preliminary valuations to assess the potential impact of the legislative change. It is also important to evaluate the business’s liquidity, given that any inheritance tax may need to be funded by the company.
An article is being shared on our website to update our clients on the forthcoming proposed changes but it would also be sensible to start approaching those who may need to review their succession plans. Please reach out to a member of our tax team for any assistance you may need.
That’s all for this month. Please reach out to Stuart Sheldrick, Adam Croft or any of the team if there is anything you’d like to discuss. For now, enjoy the sunshine everyone!