How can I prepare for selling my Accountancy Practice? (Part One)

Most accountants find the decision to sell their practice a very difficult decision to make.  If it is forced upon you by personal circumstances or by serious health issues then you often don’t have the time to think about it.  You have to get on with and make the most of a bad situation.  But if you have time to …

FAQ’s asked by clients post sale

If you are thinking of selling your accountancy practice or are thinking of buying an accountancy practice, here are some of the questions most asked by clients post sale.  You will need to know the answers to ALL of them:- Who do I phone when I have a question? Will I be charged more? What’s happening to the office? Who …

Reasons why people sell their accountancy practice

We have had a number of people come to us in the last two years that have been seriously affected by Covid 19, which has necessitated having to sell their accountancy practice.  It can be difficult to come to terms with the fact that you are having to sell rather than wanting to sell. In the past we have had …

Thoughts of a vendor who has just sold their practice through Draper Hinks

Our vendor completed on the sale of his practice in May 2022. These comments were taken from his feedback form (and yes he did give us his permission):- 1         Why did you choose Draper Hinks to sell your practice? I liked Nicola’s professional, but personable approach. 2         How have you found working with Nicola and Draper Hinks? …

Make sure you are selling what you say you are selling

Most offers are based around tranche payments of the gross recurring fees (GRF).  Care has to be taken to define what are gross recurring fees but everyone does agree that one off fees are not included in the GRF.  Most vendors will look carefully at the client listing they are selling and will take off any clients that are going …

Buying fees in a rural area

We were selling an accountancy practice in the South West of England in a very rural area.   There are far fewer accountants in rural areas which automatically makes it harder for us to find an interested buyer.  Vendors understand this.  Where an accountant moves to a part of the country that is de-populated for their own lifestyle reasons, this does …

Valuation for a divorce

I have recently been asked to value an accountancy practice where the owner was going through a divorce.  It is not as simple as applying a multiple to the turnover or the EBITDA.  There are many factors that have to be taken into account when valuing a practice.  At Draper Hinks we only sell accountancy practices, this is what we …

What to put in an offer

Not all buyers have bought before so it is important to understand what should be put in an offer.   These are some of the things you, as a buyer, will need to tell the vendor:- Income multiple This will depend on how much you think the practice is worth. Number of tranche payments This usually relates to the size of …

A round up of the year – 2021

2021 has been an unusual year for Draper Hinks.  We had a number of practices that we were looking to sell in 2020 but were put on hold until the Covid situation calmed down.  This meant that at the beginning of 2021 we were dealing with a wave of practices coming on to the market.  February is always a busy …

Do Your Clients Pay Monthly?

I can understand why having your clients pay on a monthly basis would be attractive when running an accountancy practice.  It helps with cash flow and, in theory, there are no bad debts.  That all makes good sense.   But you have to understand that when it comes to selling an accountancy practice, this can cause a problem to the buyer.  …