Hilton Smythe writes to Business Secretary Jonathan Reynolds to call for formal regulation of the UK business sales sector after multiple reports of sharp practices
A leading business advisory finance firm is calling for the government to regulate the business sales, mergers and acquisitions sector which they say is ‘unregulated and unchecked’.
Hilton Smythe, based in Manchester, believes that a lack of oversight has allowed poor service and sharp practices to persist. This is leaving many business owners vulnerable to poor advice, opaque pricing structures and a lack of accountability.
The sector, which supports thousands of entrepreneurs and SME owners each year, remains largely unregulated despite its critical role in the UK economy.
Hilton Smythe argues that this regulatory vacuum has led to a sector that is unregulated and unchecked – with wide disparities in service quality. Some operators are failing to provide accurate valuations, clear communication or appropriate buyer matching.
Gareth Smyth, CEO of Hilton Smythe, said: “There are some operators in the industry who are falling short of acceptable standards. The industry needs to modernise and take responsibility for raising standards. Too many business owners have received unrealistic valuations or have been charged substantial up-front fees with little to show in return.
“We are seeing first-hand the consequences of a sector that lacks proper oversight.
“If we are serious about supporting the UK’s business owners through one of the most significant decisions of their professional lives, then we must ensure that advisers are operating to a consistent and transparent standard.
“There are certain companies acting like it’s without clear rules and accountability – allowing sales people with no experience to value businesses and passing clients on to third parties such as solicitors based on commercial interests, rather than competence.”
Hilton Smythe is urging the peers, trade associations and government policymakers to prioritise the development of a regulatory framework that would introduce minimum service expectations for firms involved in business sales. This could include fair and realistic valuation practices, transparent fee structures, proper due diligence and clearly defined responsibilities for advisers.
Smyth added that he believes formal regulation would protect clients, enhance trust and improve the long-term credibility of the sector.
Hilton Smythe provides strategic advice, valuations and support for UK entrepreneurs and SME owners looking to buy or sell a business. The firm is known for its values-led approach and commitment to transparent, client-focused advisory services.
For more information on Hilton Smythe, visit www.hiltonsmythe.com