Let’s be positive to get corporate deals done

We’re not out of January yet and already it would seem all those New Year’s resolutions we made to be more optimistic and positive have been broken.

January 16 was officially labelled Blue Monday (supposedly the most miserable day of the year) and it certainly felt like that as two leading economic forecasters, the Item Club and Centre for Economics and Business Research, gave downbeat predictions for economic growth. What’s the point?

The former went as far to say as it believed we were already in a ‘technical recession’ with GDP shrinking in the final quarter of 2011 and likely to contract again in the first three months of this year. Well thanks for ruining the mood.

While these organisations are well within their right to analyse the data, part of me can’t help wishing they would hold off giving their opinions until the official figures are released and we know the real picture.

While I would not wish to be accused of burying my head in the sand, it sometimes feels as though these forecasts are taken too seriously, only causing more fear and hesitation among the business community.

As a dealmaker involved in advising business owners on mergers and acquisitions, I have seen firsthand how this can affect confidence with deals sometimes being put on hold as a result.

Giving entrepreneurs the certainty to invest in businesses, creating an environment where business owners feel comfortable to pass their business on, and where buyers are positive about completing acquisitions, is the key to stimulating growth.

In reality, we are getting deals done and I have advised on a good number of business acquisitions and disposals in the last 12-months. If we could also persuade those who are sitting on the fence, due to their uncertainty of what the future holds, then I’m convinced growth can happen more quickly.

There are a lot more reasons to be optimistic than the forecasters would have us believe, and my advice would be that if something feels right, it’s better to go with your instincts than allow economic predictions to create unreasonable, and often irrational, doubt.

In short, let’s all try to get that positivity back we had at the beginning of January.

To speak to our team, call us on 01772 258321.