This week has seen rising Inheritance Tax receipts and speculation of another takeover – demonstrating the depressed valuations available on AIM. Advanced Medical Solutions (‘AMS’), the world-leading specialist developer of innovative tissue-healing technology with a wide range of surgical products, has responded to speculation in the press and confirms it is in discussions with TA Associates, a private equity group, regarding a possible offer for the company.
While AMS provided no indication in its update of the level of the potential offer, Sky News has speculated on a 280p possible offer price, equivalent to over £600m. That’s an approximate 23% premium to the share price beforehand highlighting once again the appeal of AIM companies at current bargain basement prices.
Fundamental AIM portfolios have been long-term holders in AMS and we expect the Board to demand a higher price than suggested given the evident progress this business has made over recent years.
The news comes the same week that HMRC has reported that Inheritance Tax receipts have risen by a further £200m, continuing a steady upward trend.
This increase has largely been driven by the prolonged freeze in Inheritance Tax thresholds which have remained unchanged for several years, meaning more estates are becoming liable for Inheritance Tax as asset and property values rise.
As a result, Inheritance Tax planning is becoming an increasingly important — and often unavoidable — consideration. Regular reviews of wills and estate planning arrangements, with appropriate professional advice, can help mitigate unexpected tax liabilities and ensure wealth is transferred efficiently. Using a Business Relief eligible AIM portfolio such as the Fundamental AIM IHT Growth Portfolio can reduce IHT on the investment from 40% to an effective 20% rate.
If you would like to discuss recent portfolio developments, AIM opportunities, or have any other questions, please do not hesitate to contact us. 01923 713890 or email [email protected].
