Pictured above: Henry Briggs, senior partner at Haines Watts Birmingham

British businesses are being increasingly bought-out by foreign companies taking advantage of the "bargain basement" state Britain has been left in post-recession.

Henry Briggs, senior partner at Haines Watts Birmingham, believes that a weak pound combined with a weak recovery have made Britain a target for overseas 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," he said.

There has also been a reduction in the number of owner managed businesses (OMBs) being passed onto family members.

"Foreign buyers are just filling a void that is increasingly expanding. In a recent survey conducted by Haines Watts, only 16% of business owners said they were planning to hand control of their business over to another family member. This means that more than three quarters of companies will be subject to a trade sale to the highest bidder, which is increasingly coming from outside Britain," he said.

Foreign takeovers are not just confined to business; there has also been an increase in overseas companies purchasing commercial property in Birmingham. It was recently announced that American property company Hines Global REIT would be purchasing £200m of property in Brindleyplace as part of a joint deal with the Moorfield Group.

"Overseas purchase of businesses or property is not always a bad thing. Often they have the funds needed to turn around a struggling company. 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," said Mr Briggs.

In March 2010, Labour included the 'Cadbury Law' in its election manifesto, which aimed to increase the support needed from the company's shareholders for a takeover to be agreed and would give the government the right to step in. It is yet to be seen whether the current government will progress such a law, or if business itself would welcome it. 

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