• Cliff Equity
  • Posts
  • 📈 Farewill Sells for ÂŁ12.9M: Tech Meets Tradition!

📈 Farewill Sells for £12.9M: Tech Meets Tradition!

Inheritance Tax Grab Looms – Brace Yourselves!

October 18, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Farewill Sells for ÂŁ12.9M: Tech Meets Tradition!

  • Inheritance Tax Grab Looms – Brace Yourselves!

  • New CEO Needed: Boohoo’s Fashion Emergency!

The summary: Dignity’s swoop on Farewill blends old-school funeral tradition with digital innovation, proving even death services can’t escape a cheeky bit of disruption and modernisation!

The details:

  • Farewill, the UK’s digital darling of death tech, has been snapped up by funeral giant Dignity for a fire-sale price of ÂŁ12.9 million—despite raising over double that from investors.

  • Dignity’s move? A classic legacy-player-meets-upstart tale, aiming to future-proof itself in a death services market soon to be worth $190 billion.

  • Farewill’s financials showed promise—growth in sales and profits—though still not quite above water with ÂŁ4.2 million in losses, hence the all-shares deal to soften the blow.

  • Despite the sale, Farewill keeps its name and independence, but now gets to enjoy Dignity’s 200-year-old experience, setting the stage for a rather morbid, yet profitable, digital transformation.

Why it matters: Dignity’s acquisition of Farewill shows how even the funeral business is getting a tech makeover, as legacy firms scramble to keep up with digital innovation. For Farewill, it’s a bittersweet exit—a fire sale after raising millions, but a chance to live on under a 200-year-old institution. For everyone else, it’s a reminder that even death is getting disrupted—there’s no escaping progress, not even in the afterlife.

The summary: Get ready for potential inheritance tax hikes, sneaky National Insurance increases on businesses, and Labour's fiscal juggling act as they try to patch up a ÂŁ40bn hole without breaking their tax promises too much!

The details:

  • The government may soon tinker with inheritance tax rules, eyeing a bigger slice of your estate above the ÂŁ325,000 threshold. Which exemptions will get the chop? Wait for the 30th October Budget for that joy.

  • Labour’s plan not to raise National Insurance for "working people" might get a cheeky reinterpretation—businesses, prepare to feel like you're carrying that label.

  • Ministers are scrambling to fill a ÂŁ40bn black hole in public finances. Expect a "Fixing the Foundations" speech, complete with the usual fiscal juggling and promises of change.

  • Shadow Chancellor Jeremy Hunt’s verdict: Labour’s tax plans are the “real scandal,” targeting those who've worked hard to leave a legacy, but failed to fess up before the election.

Why it matters: Inheritance tax tweaks could mean more families waving goodbye to larger chunks of their loved one's hard-earned assets—just as the cost of living is hitting hard. Businesses might soon find themselves paying more National Insurance, even if they thought they were part of the “working people” promise. And Labour’s budget decisions are shaping up to be a game of political pinball, with everyone dodging the tax rises they swore wouldn’t happen.

The summary: As Boohoo’s CEO bows out amid a dramatic share price drop and fierce competition from Shein, the brand faces a pivotal moment to reinvent itself and regain its stylish edge in the e-commerce scene!

The details:

  • Boohoo CEO John Lyttle is stepping down after steering the company through a 90% share price nosedive during his five-year tenure. Quite the farewell!

  • The Manchester-based e-commerce firm saw a 7% drop in sales, with sharp declines in the US (18%) and elsewhere (21%), as rival Shein steals the limelight with skyrocketing UK revenue.

  • Boohoo’s bright idea? A fresh ÂŁ222m debt facility to keep things ticking along, with a slightly more favorable interest rate—because who doesn’t love a bargain on debt?

  • With shares down 88%, Boohoo is mulling over ways to unlock shareholder value. Selling brands? Going private? Stay tuned for the plot twist.

Why it matters: Boohoo's tumble from grace is a cautionary tale for e-commerce enthusiasts, proving that even the mightiest can falter in the fast-paced world of online retail. As Shein swoops in like a trendy vulture, it’s clear that the competition is fierce, and Boohoo's next moves will be crucial in determining if it can reclaim its crown or simply become yesterday’s fashion. With shareholders anxiously biting their nails, it’s time for Boohoo to don its thinking cap—after