|Nicola Draper founder Draper Hinks
Selling your practice is not always an easy decision to make. When is the right time? We like to think we have all the time in the world to plan our lives but that is not always the case.
What if you are diagnosed with a serious illness and need to sell urgently? What if someone in the practice dies? These are real scenarios we are currently dealing with. Speak to a broker that cares. Email Nicola to have a chat at firstname.lastname@example.org.
Always talk to us first if you want to sell
If you are approached directly by a local accountant who wants to buy your fees, that shows you have something of value. Most local accountants do not know the market rates for practices. A vendor in March was told it was a buyer’s market and the going rate was 0.5 x fees. This is not correct. This is why you need to speak to us first! Call us on 01788 816440.
|Details of a deal done 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|
|Two more happy vendors whose practices we sold in 2022|
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 the 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 Selling Fees Ebook.
- Book a time to talk to Nicola on Calendly using this link:-
- Read our monthly Blogs that give regular market commentary.
- Read a case study