Potential Seller Newsletter February 2019

				Draper Hinks Newsletter Issue 1 2019
				Hello, I’m Nicola Draper. I run Draper Hinks and have done so since 2004. We sell only accountancy fees and have completed over 260 deals. We are very active in the market place for buying and selling accountancy practices. I work with all the sellers, so if you are looking to sell in the near future, please email me at n.draper@draperhinks.co.uk
*Nicola Draper founder Draper Hinks*

Sell your fees – reap the rewards
Draper Hinks is a very successful business brokerage working only with accountants in practice. We cover the whole of England and sell practices and tranches of fees of all different sizes. If you are considering selling your fees then please get in touch.
Case Studies Here are three case studies of practices we have sold within the last 12 months:-
No. 1
Fees sold	£600,000		Where		Hampshire
Qualified	QBE		Age		65
Time scale	6 months		Type of Practice		Sole Practitioner
Payment	Earn out		How paid		25% paid over 4 years
Multiple	0.9 x fees		When paid		Quarterly in arrears for 4 years
Offers	1 offer		Office & staff		Office and staff retained
Results	Vendor stayed on full time post sale for 12 months then reducing over next 3yrs

No. 2
Fees sold	£238,000		Where		Cambs
Qualified	FCCA		Age		46
Time scale	7 months		Type of Practice		Sole Practitioner
Payment	3 tranches		How paid		50% 25% 25%
Multiple	1 x fees		When paid		Comp, 12 & 24 months
Offers	2 offers		Office & staff		Office closed, some staff retained
Results	Vendor working on other business interests, unrelated to accountancy

No. 3
Fees sold	£108,000		Where		West Midlands
Qualified	FCA		Age		65
Time scale	8 months		Type of Practice		Sole Practitioner
Payment	3 tranches		How paid		40% 30% 30%
Multiple	1 x fees		When paid		Comp, 12 & 24 months
Offers	2 offers		Office & staff		Office shut, staff transferred
Results	Vendor travelling, playing guitar, reading and having nothing to do with numbers.

		Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks. If you want to meet with Nicola Draper to talk about selling your practice in confidence, then please contact me so that I may arrange an appointment for you. You can call me on 01788 816440 or email me at d.crawley@draperhinks.co.uk. I also deal with all the buyers for Draper Hinks so if you are thinking of buying fees please get in touch.
*Diane Crawley, Office Manager*

Testimonials Here are three testimonials from vendors whose practices we sold in 2018:-
Testimonial 1 “Draper Hinks got in touch with me via mail shots in the post. I googled reviews after receiving the mail shots and found the reviews to be good. My first impression after making contact was very good. Nicola was very friendly and helpful. Communication was prompt. The process was efficient. It had all been done before and that put me at my ease. I would not have sold on my own. It was helpful to have the introductions made for me and to have the excellent telephone guidance from Nicola.” Vendor – Ann Burnett Yorkshire
Testimonial 2 “I heard about Draper Hinks from a former colleague, who gave an excellent recommendation. I have found working with Draper Hinks has been relaxed throughout. First impression was their presentation was very clear with a no fuss no nonsense approach. We worked well together. They cut to the quick without flannel, keeping things on an informal basis. Selling through a broker ensured that potential buyers were presented with all the information they required.” Vendor – Dave Pearce Cambridgeshire
Testimonial 3 “We had known of Draper Hinks for some time. We found them to be very professional and effective. They offer a very helpful, straightforward and quick service. Nicola is a woman of action. The process was tailored to our specific needs following a death in the practice. It is a far more effective use of time and resources to have someone do the background work for you at a very stressful time. It is also very useful to have someone who knows and understands the accountancy sector so well.” Vendor – David Lakin Lancashire


Talk to Nicola Draper about selling your practice Have you thought about selling your fees but are not sure what to do or when to do it? Nicola would like to talk to you. Nicola would be happy to meet with you at our offices at 60 Regent Street in Rugby or alternatively you can have a telephone conversation or Skype call. To arrange an appointment please contact Diane on 01788 816440 or email her at d.crawley@draperhinks.co.uk We are keen to talk to you to help you with your decision as to when and how to sell.

Income Multiples Paid in the last 12 months

2018		Average income multiple paid	Lowest income multiple paid	Highest income multiple paid	Lowest income multiple offered	Highest income multiple offered
Q 1	Jan – Mar	0.93	0.5	1.05	0.5	1.05
Q 2	Apr – Jun	0.95	0.65	1.07	0.65	1.1
Q 3	Jul – Sep	1.02	0.8	1.3	0.5*	1.5**
Q 4	Oct – Dec	1.06	1	1.15	1	1.5

NB * One off payment offered.

** Small tranche of fees for sale in London, this was oversubscribed.

David’s Diary

David is a newly retired sole practitioner doing consultancy work for the buyer.

“I can now work at what I enjoy without the constant worry and distraction of GDPR and the ever increasing red tape. I will soon be into my long awaited three day week and we will have our first proper holiday in years.

This has certainly been a good move. I am gradually acquiring the art of working with other people. I was surprised at how nervous I felt but it has been a good experience and everyone works hard and grumbles a bit.

Ok I am not a partner but I still feel responsible to the clients for a smooth transition. They are no longer my clients but I want to do my bit to ensure that they all receive the same kind of personal service they have been used to.

I imagine my experience has been pretty normal in that there have been things that could have worked out better. Being let down by the software company put immense pressure on everyone and has led to lots of overtime. But we have coped, made new friends and in a couple of weeks should be where we want to be.”

David Shackleton

Lisa Shenton, Admin Assistant

Hello, I’m Lisa Shenton and I am an Admin Assistant at Draper Hinks. I am the person that will be sending these regular Newsletters to you so look out for emails from me in future.

I am also the person to notify if you wish to update your records in any way so please let me know if you move office or change your email address. I can also remove you from receiving any future Draper Hinks correspondence.

Please email me at l.shenton@draperhinks.co.uk.