Potential Seller Newsletter #2 2021

Nicola Draper founder Draper Hinks
Hello, I’m Nicola Draper.  I run Draper Hinks and have done so since 2004.   We sell only accountancy fees and I am excited to announce that, since inception, we have completed over 323 deals.

Draper Hinks is very proud of its track record and reputation.  Please feel free to contact me anytime at n.draper@draperhinks.co.uk with any questions.

Do you know what options are available to you when you sell?

Some vendors are paid a one-off fee with no clawback.  Some vendors are paid in two tranches, one on completion and one after 12 months, with clawback.  Some vendors are paid in three tranches, completion, after 12 months and after 24 months.  Other vendors are paid on an earn out basis where no money is paid on completion.  Other vendors are paid a lump sum on completion and then the rest on an earn out.  Which one is applicable to your situation?

This is a case study from a practice we sold in 2020:-
No. 1  
Fees sold £250,000 Where West Midlands
Qualified QBE Age 57
Time scale 8 months Type of Practice Sole Practitioner
Payment 3 tranches How paid 50%, 25% & 25%
Multiple 1.28 x fees When paid Comp, 12 & 24 months
Offers 3 offers Office & staff Kept office and staff
Results Vendor worked for buyer for 12 months then retired.

 

 

Are you a seller in one of these areas? 

This is only small sample of some of the buyers registered with us, we have many more that are keen to buy.  These buyers have specifically asked us to find a seller for them in your area and are keen to proceed.  If you are interested in finding out more, then please contact me, Nicola Draper, at n.draper@draperhinks.co.uk quoting the reference.

Ref Where Amount
P2/W1/DHB/4 Buckinghamshire up to 500k
P2/W1/DHB/5 Bedfordshire up to 200k
P2/W1/DHB/6 Gloucestershire up to 100k

 

 

Here are two testimonials from previous vendors:-
Testimonial 1

Two reasons to recommend Draper Hinks?

1) Approachability and ease of communication in an area that can be very emotive and touches on very personal and deeply felt issues = TLC received.

2) No hard sell – just a focus on achieving the right deal for the right reasons for all parties.

3) Level of commitment given is certainly perceived as high.

Oopps that’s three – never could count!

Vendor – Martin Potts   ACA                      Nottinghamshire

Testimonial 2

I felt very relaxed with the process used to sell my practice.  I am more than willing to recommend all sellers talk to Draper Hinks before starting the process of selling their fees.

Vendor – Les Harrison   FCCA                  Staffordshire

 

 

Income Multiples Paid in the last 12 months

2020 Quarter Average income multiple paid Lowest income multiple paid Highest income multiple paid Lowest income multiple offered Highest income multiple offered
Quarter 1 Jan – Mar 1.075 0.9 1.25 0.9 1.25
Quarter 2 Apr – Jun 1.13 1.0 1.2 1.0 1.2
Quarter 3 Jul – Sep 0.9766 0.65 1.28 0.65 1.28
Quarter 4 Oct – Dec 1.01 0.8 1.25 0.8 1.25

Please check out our website www.draperhinks.com where you can:-

  • Download our Guide to Selling and Buying Fees by registering for our eBook.
  • View lots of video testimonials.
  • Read our monthly Blogs that give regular market commentary.

Next step

If you are thinking about selling, then contact Nicola Draper at n.draper@draperhinks.co.uk or call her on 01788 816440.  Everything discussed will be totally confidential.