|Nicola Draper founder Draper Hinks
Looking to buy a practice? Make sure we know about what you are looking for. To date we have completed over 385 deals so we know what we are talking about.
We can do bespoke searches for you if you are keen to buy in a specific area. These targeted searches can be very successful.
Are you connected with us on LinkedIn? We post regularly with top tips and ideas for buyers.
Make sure you have funding in place
Don’t even consider putting in an offer to buy a practice if you do not have funding in place. This is a waste of your time, the vendor’s time and our time. It does not matter how keen you are to buy. Also, make sure you know what the terms are of the lender. Some lenders only give a 7 day offer period before you have to draw down the money. We can recommend someone who can help you with your borrowing needs if that would help. Call us on 01788 816440 and ask for Diane Bester or Marie Large to discuss your situation.
Practices for Sale
|559/230308||Devon||£23,808||Vendor selling tranche of fees and semi-retiring. Total top 14 clients fees £12,553. Not VAT registered. Buyer needs to be Chartered or Chartered Certified.|
|560/230313||Devon||£35,500||Vendor retiring. Top 10 clients fees £12,245. Not VAT registered. Buyer needs to be qualified.|
|568/230313||Cornwall||£202,204||Vendor retiring. Total top 10 clients £45,683. Premises available to rent or buy if required. 4 f/t and 1 p/t staff.|
|This is a case study from a practice we sold in 2022:-|
|Fees sold||£300,000||Where||Tyne & Wear|
|Time scale||6 months||Type of Practice||Sole Practitioner|
|Payment||Lump sum & Monthly Payments||How paid||Paid over 3 years|
|Multiple||0.9 x fees||When paid||Completion & 36 monthly payments, no clawback|
|Offers||2 offers||Office & staff||Office and staff kept|
|Results||Vendor helped with handover then left to travel|
Here are two testimonials from previous vendors:-
I was recommended to use Draper Hinks by other accountants. The team at Draper Hinks understood my position and were very knowledgeable. The reassurance they provided throughout the process was great. Do not contemplate selling on your own, use a broker that has the experience to guide you from start to finish. The Coaching Call was the most important part of the process, it prepared me for my meetings with buyers and gave me the confidence I needed.
Vendor – Helen Vining FCA Warwickshire
I heard about Draper Hinks from their helpful newsletters. I would give Nicola 10 out of 10, she was excellent to work with. I was going to give notice to my clients but after talking to Nicola she found a buyer for me and I sold them. I think the DH process is superb. Don’t underestimate how emotional the selling process can be. The Coaching Call gave me structure and kept the conversations with buyers relevant and concise. I am now off to build myself a house!
Vendor – Deepak Wadhwani ACA Bristol
Income Multiples Paid in the last 12 months
|2022||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||0.76||0.6||1.0||0.5 (1pmt)||*1.50|
|Quarter 2||Apr – Jun||1.02||0.73 (1pmt)||1.15||0.6 (1pmt)||1.25|
|Quarter 3||Jul – Sep||1.05||1.0||1.2||0.8||1.2|
|Quarter 4||Oct – Dec||0.91||0.5||1.0||0.5||1.0|
*1.5 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 Draper Hinks Buying Fees Ebook.
- Read our monthly Blogs that give regular market commentary.
- Read a case study