Potential Seller newsletter #4 2020

Draper Hinks Newsletter Issue 4 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 310 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

 

What we are looking for

It’s simple, we are looking for accountancy practices that want to sell fees.

Don’t make the mistake of selling your fees to the first person you talk to.  We have heard of horror stories where ridiculously low multiples have been offered and accepted.  Multiples as low as 0.1 x fees.  You could say the buyer was “stealing” the clients for that price.

We have sold whole practices and we have sold tranches of fees.  There are buyers out there looking to buy.  We have many of them registered with us who are keen to talk to serious vendors.

Please contact Nicola at n.draper@draperhinks.co.uk or phone her on 01788 816440, to see how we may be able to help you.

Talk to Nicola Draper in confidence about selling your practice

During lock down have you considered selling your fees?  Are you fed up with the red tape that only seems to be getting worse each year?

Would you like to talk to someone with over 15 years of experience in dealing with these matters?  Nicola Draper would be happy to talk to you, in confidence, about your own situation and what options are available to you.  There may be things you have not considered that she can make you aware of.

Nicola will also run through the process of selling your fees and how to maximise your return while your staff and clients are looked after by the buyer.

If you would like to arrange a video call or a phone appointment to discuss your situation then please contact Diane Crawley, office manager, 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 £350,000 Where Northamptonshire
Qualified FCCA & FCA Age 65 & 62
Time scale 6 months Type of Practice 2 Partners
Payment 3 tranches How paid 40%, 30%, 30%
Multiple 1.1 x fees When paid Comp, 12 & 24 months
Offers 4 offers Office & staff Office and staff retained
Results Both partners retired, spending time with grandchildren and are much happier.
   
 

No. 2

 
Fees sold £250,000 Where Oxfordshire
Qualified FCA Age 62
Time scale 9 months Type of Practice Sole Practitioner
Payment Earn out How paid 33% fees rec’d for 3 years
Multiple 1 x fees When paid Every quarter in arrears
Offers 2 offers Office & staff Office & some staff retained
Results Vendor left after handover, now not doing any form of accountancy work.
   
No. 3  
Fees sold £200,000 Where Cambridgeshire
Qualified FCMA Age 64
Time scale 5 months Type of Practice Sole Practitioner
Payment 4 tranches How paid 40%, 20%, 20%, 20%
Multiple 1 x fees When paid Comp, 6, 12 & 24 months
Offers 3 offers Office & staff Office shut, some staff kept
Results Vendor doing more travelling, reading and generally enjoying life.
Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks.  If you want to talk with Nicola about selling your practice, 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

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

I heard about Draper Hinks from some direct marketing.  I chose to use them based on an initial conversation with Nicola Draper and a combination of low cost, ease of process and the support and advice provided by DH throughout.  Working with them has been easy.  Draper Hinks are the experts in the field and were both helpful and cost effective.  I would advise anyone to use Draper Hinks as they are the specialists.

 

Vendor – Robert Glover FCCA                             Barnet

 

 

Testimonial 2

I heard about Draper Hinks from the internet.  They seemed experienced at selling fees.   They did everything they said they would do and their “handholding” was excellent.  They knew what they were talking about.  The process they follow works.  I would happily recommend them.

 

Vendor – Brendan Sugden FCA                             Yorkshire

 

Testimonial 3

I heard about Draper Hinks from a mail shot.  They were brilliant and very professional.  My first impression was excellent.  The process offered was ideal and expeditious.  The two main things that were good about Draper Hinks was their speed and efficiency.  Anyone thinking of selling should use Draper Hinks for peace of mind and for their personal approach.

Vendor – Ian Dobson  QBE                                                         Yorkshire

 

 

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 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
Quarter 2 Apr – Jun 1.13 1.00 1.20 1.00 1.20

 

 

Fees Required by Buyers

We have many buyers registered with us that are keen to buy fees.  Are you thinking of selling fees in any of the areas below?  If so, please contact Nicola on n.draper@draperhinks.co.uk stating the reference.

Ref Where Amount   Ref Where Amount
P4/W1/DHB/1 Luton 500k P4/W1/DHB/7 Evesham 100k
P4/W1/DHB/2 Stratford upon Avon 300k P4/W1/DHB/8 Leicester 100k
P4/W1/DHB/3 Loughborough 300k P4/W1/DHB/9 Bristol 100k
P4/W1/DHB/4 Princes Risborough 250k P4/W1/DHB/10 Cheltenham 100k
P4/W1/DHB/5 Wantage 200k P4/W1/DHB/11 Witney 50k
P4/W1/DHB/6 Bedford 200k P4/W1/DHB/12 Worcester 50k
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 the person to notify if you wish to continue to receive these newsletters or if you wish to stop receiving them.   Please 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

We want to hear from you if you are seriously considering selling some accountancy fees.    Contact Diane Crawley at d.crawley@draperhinks.co.uk or call her on 01788 816440.