Potential Seller Newsletter 2019 #3

Draper Hinks Newsletter

Issue 3 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 280 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 get in touch.
Case Studies

Here are three case studies of practices we have sold within the last 12 months:-

 

No. 1  
Fees sold £320,000 Where East Sussex
Qualified FCA Age 67
Time scale 12 months Type of Practice Sole Practitioner
Payment 2 payments How paid 50% & 50%
Multiple 1 x fees When paid Comp & 12 months
Offers 2 offers Office & staff Neither office nor staff retained
Results Vendor playing more sports and travelling
   
No. 2  
Fees sold £230,000 Where Avon
Qualified FCA Age 66
Time scale 5 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 1 offers Office & staff Office closed, some staff retained
Results Vendor spending more time with grandchildren
   
No. 3  
Fees sold £125,000 Where Berkshire
Qualified QBE Age 63
Time scale 4 months Type of Practice Sole Practitioner
Payment 2 tranches How paid 50% & 50%
Multiple 1 x fees When paid Comp & 12 months
Offers 4 offers Office & staff Office and staff retained
Results Vendor helping with handover for 12 months before retiring
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 that were happy with the service offered by Draper Hinks in 2018:-

Testimonial 1

“I found Draper Hinks via a mail shot.  I spoke to three brokers in total and Draper Hinks were the best. There were not many problems during the process, so I didn’t need a lot of hand holding.  First impression was that they were nice people to deal with.  My advice is that you should use a broker if you don’t have a ready buyer of your own and make sure you have a good lawyer!”

Vendor – Graham Flight                                 Sussex

Testimonial 2

“I had a personal recommendation to use Draper Hinks by a third party independent business coach.  I liked what I read on their website.  There was a lot of useful and positive information.  The business was very efficient.  The advice proved to be very useful.  My first impression was that I got a good response from talking to Nicola.  It is a well tried and tested approach, so don’t mend what is not broken.  I was fully satisfied with my experience of working with Draper Hinks.  It took all the pressure out of trying to find a serious buyer.  It also helped a great deal that I could call on Nicola’s experience.  You need someone to advise on what needs to be done.  Only sell on your own if you want to take on a lot more administration and pressure.”

Vendor – Richard Trimmer                            Berkshire

Testimonial 3

“I heard about Draper Hinks when I was looking to buy fees and I knew someone who had used their services and they gave a glowing testimonial.  I decided to use Draper Hinks and was pleased with the way I was dealt with.  Working with them was very good.  My first impression was that they were positive and helpful.  The process was thorough.  Working with Draper Hinks was good because they responded quickly, took a keen interest in what was going on and were very supportive.  Nicola was the gatekeeper between potential buyer and the seller, where the buyer was trying to make direct contact with the seller.  Selling on your own would not generally give the individual the independent view the broker provides.  A broker is likely to reach a lot more buyers than an individual selling his/her wares.”

Vendor – Gary Brewerton                               Oxfordshire

 

Meet with Nicola

Would you like to have a face to face meeting with Nicola Draper, to talk about your own situation in confidence?  These meetings are free and you will get the chance to ask any questions that you may have about the process, market conditions, expected multiples, time scales, etc.

Nicola will be happy to have a meeting with you to discuss the sale of your practice, if you have over £150,000 GRF (Gross Recurring Fees) and are looking to sell these fees within the next 12 months.  It is important that you are not already talking to another broker and do not have an existing buyer interested in buying your fees.

The meetings will take place at the XX XXXX  XXXX   on Tuesday 29th May 2019.  Appointments get snapped up very quickly, so you will need to book your time by Friday 18th May 2019.  The available time slots are 10.30am – 12.30pm and 1.30pm – 3.30pm.  In order to reserve your appointment please contact Diane Crawley.  You can email Diane at d.crawley@draperhinks.co.uk or phone her on 01788 816440 quoting reference DIM/LIN/199909.

However, if you do not meet the criteria specified above, and want to sell fees below £150,000 GRF, we are still very keen to hear from you.  In which case Diane will arrange a telephone or Skype appointment with Nicola.  Nicola will cover all the same areas as a face to face meeting including any questions you may have.  Please contact Diane to arrange an appointment on 01788 816440 or email her at d.crawley@draperhinks.co.uk.

 

 

 

Income Multiples Paid in the last 15 months
  Average income multiple paid Lowest income multiple paid Highest income multiple paid Lowest income multiple offered Highest income multiple offered
2018
Q 1 Jan – Mar 0.93 0.50 1.05 0.50 1.05
Q 2 Apr – Jun 0.95 0.65 1.07 0.65 1.10
Q 3 Jul – Sep 1.02 0.80 1.30 0.50 1.50
Q 4 Oct – Dec 1.06 1.00 1.15 1.00 1.15
  Average 0.99
2019
Q 1 Jan – Mar 1.03 0.75 1.30 0.50 1.30
David’s Diary

Welcome to the third instalment of David’s story since selling his practice through Draper Hinks in October last year.

We are now working on the 18/19 accounts and tax returns for clients, where this will be their first experience of the new firm. So we are keen to make sure that as far as possible it is as smooth a transition as possible. There have been a few niggles. For instance the merging of data threw up some anomalies even though we both used the same software. A few clients suddenly found themselves directors of companies they knew nothing of or in some instances the transferred income data was partially incomplete. It is impossible to spot all this so when it gets under the radar it becomes a matter of taking a deep breath and spending time talking with the client to reassure them and keep calm.

Initially a lot of my time was spent in talking to clients and exchanging e-mails to show I was still around and had their best interests at heart. In fact I had more time for this than before as much of the routine work is now delegated. I also had to set up and prepare files to help the accounts team with each client and explain how we did things. A lot of our clients have March year ends and just this last week I have counted 10 staff working on our clients 18/19. It’s great. I can now focus on engaging with clients, trouble shooting and making more of a difference which is what I enjoy most.

Seven months in and I am beginning to get used to working with others!!

  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.

If you would like to receive them electronically, please can I have your email and your consent to use it.

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

Please use my email above if you no longer wish to receive these Newsletters from Draper Hinks.