Foreign takeovers rife in "bargain" Britain, says Birmingham accountant
British businesses are increasingly being bought by foreign companies taking advantage of “bargain basement Britain”, according to chartered accountant Haines Watts. The Birmingham-based firm says that just 16 per cent of business owners are planning to hand control of their business to another family member.
The firm says that a combination of a weak pound combined with a weak recovery have made Britain a target for overseas buyers.
As well as owner-managed businesses failing to be passed down the family line, national companies are also selling up to foreign buyers.
“Established British brands such as Cadbury, T-Mobile, P&O and Scottish Power have been bought out by foreign companies able to outbid their British counterparts in these bargain basement buyouts,” said Henry Briggs, senior partner at Haines Watts Birmingham.
Briggs added that overseas purchase of businesses was not “always a bad thing”. However, he said: “The only word of caution is that foreign takeover can result in a loss of jobs or in relocation of parts of the business overseas.
“Kraft’s takeover from Cadbury is likely to see the closure of some plants and the loss of jobs – exactly what Britain doesn’t need right now.”
