Potential Seller Newsletter #2 2020

Hello, I’m Nicola Draper.  I run Draper Hinks and this year will be our 20th Anniversary.   We sell only accountancy fees and I am excited to announce that, since inception, we have completed over 305 deals.

We are very proud of our track record and our reputation.  Please feel free to contact me anytime at n.draper@draperhinks.co.uk with any questions.

Nicola Draper founder Draper Hinks

 

 

We are back in business. 

Draper Hinks has been closed for the last couple of months.  Unlike accountants we have not been busy, so it was decided that we should shut the office and everyone was furloughed.  However on Monday 15th June, the office re-opened and we are now looking to broker some more deals, so are keen to talk to you.

We have a database with buyers that are based all over the country.  Many of these buyers are in touch with us on a regular basis and are disappointed not to find more sellers on the market.  Whatever size your practice is, I am sure we can find a buyer for you.  We can give you current information about how Covid 19 has affected the marketplace.

I often get asked what a vendor can do to make their practice more saleable and my three top tips are:-

  • Make sure your fees are market rate and not below.
  • Make sure your clients are of all ages and not just the older range.
  • Increase your fees every year if you can, even if only by a small amount.

These are some of the things that buyers will be looking for.

 

 

Talk to Nicola Draper about selling your practice

If the last few months has made you feel like you want to sell your practice but you are not sure how to go about it, then Nicola would be happy to talk to you.

Nicola would normally hold face to face meetings with potential vendors, but due to the current situation, we have had to cancel her normal meeting days in your area and are also unable to offer you such a meeting at our offices at 60 Regent Street in Rugby.

However, if you are keen to find out more about the process of selling, what it entails, how you get paid etc etc we would be happy to set up a phone appointment or a video call with Nicola.   Everything discussed is confidential. In order to book a telephone or video appointment please contact Diane Crawley at d.crawley@draperhinks.co.uk or phone her on 01788 816440.

Here are three case studies of practices we have sold within the last 12 months:-
No. 1  
Fees sold £525,000 Where Birmingham
Qualified FCA & FCA Age 65 & 48
Time scale 12 months Type of Practice 2 Partners
Payment 3 tranches How paid 40%, 30%, 30%
Multiple 1 x fees When paid Comp, 12 & 24 months
Offers 2 offers Office & staff Office and staff retained
Results Snr Partner retired, junior partner stayed on working with buyer in new capacity.
   
No. 2  
Fees sold £300,000 Where Rutland
Qualified FCCA Age 67
Time scale 9 months Type of Practice Sole Practitioner
Payment 3 tranches How paid 33.3%, 33.3%, 33.3%
Multiple 0.6 x fees When paid Comp, 12 & 24 months
Offers 3 offers Office & staff Office & some staff retained
Results Vendor helping with handover and then looking forward to travelling with family
   
No. 3  
Fees sold £200,000 Where Oxfordshire
Qualified FCCA & QBE Age 61 & 54
Time scale 9 months Type of Practice 2 Director Firm
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 MD retired to “other things” other director continued working with the buyer post sale

Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks.  If you want to talk to Nicola about selling your practice then please contact me so that I may arrange a telephone or video 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

 

 

Here are three testimonials from vendors that were happy with the service offered by Draper Hinks in 2019:-
Testimonial 1

I was impressed by the Draper Hinks website, especially by the number and variety of accountants who had provided testimonials, which were clearly genuine.  The process was straightforward, clear and with surprisingly few steps involved.  I spoke to Nicola for an hour and a half before firmly deciding to sell.  I was able to ask all the questions I could think of.  Using Draper Hinks added a note of seriousness, a formality and a structure that would not have existed had two parties unknown to each other just got together to have a chat.  Working with Draper Hinks was very straight forward.

Vendor – Mark Bale FCA CTA                                  Oxfordshire

 

Testimonial 2

I heard about Draper Hinks through a colleague.  I found working with them to be efficient and harmonious.  The process is streamlined but effective.  It was good to work with someone on a personal basis.  Using a broker saves footwork!

Vendor – Tony Mynette  AFA  MIPA                                West Midlands

Testimonial 3

I heard about Draper Hinks from their reputation.  People work with people they know, like and trust.  All three apply to Draper Hinks.  Working with them was very good.  They are very well organised, very experienced and there are no false representations.  Working with Draper Hinks got me a higher price and took the pressure off me. 

Vendor – Alan Kennedy       FCA                            Oxfordshire

 

 

Income Multiples Paid in the last 12 months

2019 Quarter Average income multiple paid Lowest income multiple paid Highest income multiple paid Lowest income multiple offered Highest income multiple offered
Quarter 2 Apr – Jun 0.96 0.6 1.4 0.6 1.4
Quarter 3 Jul – Sep 1.1 1 1.2 1 1.25
Quarter 4 Oct – Dec 0.9125 0.7 1.1 0.65 1.2
2020
Quarter 1 Jan – Mar 1.075 0.9 1.25 0.9 1.25

 

Hello, I’m Lisa Shenton and I am an Admin Assistant at Draper Hinks.  I am the person that normally sends out these Newsletters but at the moment I am furloughed and not in the office but my emails will be monitored while I am away.

I am normally the person to notify if you wish to continue to receive these newsletters or if you wish to stop receiving them.   You can still email me at l.shenton@draperhinks.co.uk stating you want to be removed from our database.  If on the other hand you would like to continue receiving them please can we have both your email and your consent to use it to send the newsletters to you electronically.

 

 

 

Lisa Shenton, Admin Assistant

 

 

 

Next step

Contact us if you want to discuss selling any fees.  Please get in touch with Diane Crawley at d.crawley@draperhinks.co.uk or call her on 01788 816440.