Squeeze those suppliers

With the new capital gains tax (CGT) regime upon us, a clearer picture should emerge of the mismatch between vendor and buyer price expectations. It has been suggested that the CGT changes have given a false picture of deal flow, especially in the lower mid-market, as sponsors look to push through sales and avoid the extra 8% on capital gains. With many vendors still clinging to pre-credit squeeze valuations, we will likely see fewer deals in the coming months as GPs struggle to convince sellers of changed market dynamics