Unlike in some countries, the UK has an extremely stable government, with the least amount of corruption. Ranked higher than Japan, Germany, the US and France, it’s no wonder that many company value calculations are higher for UK based businesses than those based in Europe and beyond.
The taxation situation
When it comes to paying corporate tax, many investors choose to take advantage of the UK’s generous allowances. In addition to this, the higher rate of personal tax at just 40% is the lowest in the European Union. In fact, the government here in the UK has committed itself to providing the most tempting tax breaks in the entire G20.
Stable and regulated
Businesses in the UK are regulated well, giving them stability compared with some other countries, and the regulations are established through consultancy, which can help to improve business potential.
As one of the most widely spoken languages in the world, English is the operating language in many different industries, from aviation to programming. Basing a business in UK means that it will have global appeal.
In the UK, the Rigidity of Employment Index is considerably lower than it’s major EU competitors, making it easier to hire new staff here. Add that to the fact that the UK’s educational facilities have the ability to provide graduates with well-respected degrees and you’ll be able to hire new qualified staff easily.
There are of course many other reasons why overseas investors look to buy UK based businesses, but given the points above, it’s really no surprise that business valuation methods that take into account the points above will come up with a higher value in most cases than businesses located outside the UK.