Potential Seller Newsletter #3 2022

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 360 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.

 

MORE SELLERS WANTED

We had a completion at the beginning of May this year and the vendor wanted to share these three tips to other potential vendors:-

  • Don’t do it on your own.  It is more stressful than you can imagine.  Having someone throughout the process you can talk to is invaluable.
  • Always pause and reflect before responding to emails.  It can get emotional so don’t burn your boats by doing something rash.  Always keep things civil and constructive.
  • Get a good solicitor.  They are expensive but the best ones are worth their fees.
This is a case study from a practice we sold in 2021:-
Fees sold £423,000 Where Warwickshire
Qualified FCA & QBE Age 65 & 59
Time scale 9 months Type of Practice 2 Partners
Payment 3 tranches How paid 50%, 25%, 25%
Multiple 1.1 x fees When paid Comp, 12 months, 24 months
Offers 3 offers Office & staff Office and staff retained
Results Vendors looking forward to not doing too much!

 

 

Are you a seller in one of the areas below? 

We have buyers in the areas below, actively looking to buy.  If you have fees for sale and  are interested in knowing more, than contact me n.draper@draperhinks.co.uk quoting the reference.

We are also looking for a seller anywhere in the country that has up to £200k where all work is done online – ideally using Xero, could that be you?  Contact n.draper@draperhinks.co.uk if you want to know more.

Ref Where Amount (£)
P3/W1/DHB/7 Warwickshire up to 650k
P3/W1/DHB/8 Hertfordshire up to 300k
P3/W1/DHB/9 Bedfordshire up to 100k

 

Here are two testimonials from previous vendors:-
Testimonial 1

I was recommended to use Draper Hinks by someone who had sold their practice through them five years previously and was very happy with the outcome.  I have found them to be very friendly and helpful.  Their process is thorough and informative, working with them made the whole process easy.  I am now looking forward to retiring fully!

 

Vendor – Chris Hughes   QBE                      Hertfordshire

 

Testimonial 2

I received a mail shot from Draper Hinks and was impressed with the clear and confident way that they explained the process.  I have found it all to be a very good experience.  I had expert guidance at all stages of the process.  Using a broker like Draper Hinks provides a clear structure to the transaction that would not be there otherwise.  Having sold, I am now enjoying a period of stress-free living which I haven’t experienced in over 30 years.

 

Vendor – Chris Humphrey   ATT                Buckinghamshire

 

Income Multiples Paid in the last 12 months

2021 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 1.1 0.85 1.1 0.7 1.25
Quarter 3 Jul – Sep 0.995 0.6 (1 pmt) 1.25 0.5 (1 pmt) 1.25
Quarter 4 Oct – Dec 0.9475 0.8 1.25 0.8 1.25
2022
Quarter 1 Jan – Mar 0.76 0.6 1.0 0.5 (1 pmt) *1.50

* 1.50 x fees was offered but rejected because the fit was not good between buyer and seller.

NB None of the above figures are to be reproduced in any way without express permission from Nicola Draper.

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.