Potential Seller Newsletter June 2019

				Draper Hinks Newsletter Issue 3 2019
				Hello, I’m Nicola Draper. I run Draper Hinks and have done so since 2004. We sell only accountancy fees and have completed over 280 deals. We are very active in the market place for buying and selling accountancy practices. I work with all the sellers, so if you are looking to sell in the near future, please email me at n.draper@draperhinks.co.uk
*Nicola Draper founder Draper Hinks*

Sell your fees – reap the rewards
Draper Hinks is a very successful business brokerage working only with accountants in practice. We cover the whole of England and sell practices and tranches of fees of all different sizes. If you are considering selling your fees then get in touch.
Case Studies Here are three case studies of practices we have sold within the last 12 months:-
No. 1
Fees sold	£320,000		Where		East Sussex
Qualified	FCA		Age		67
Time scale	12 months		Type of Practice		Sole Practitioner
Payment	2 payments		How paid		50% & 50%
Multiple	1 x fees		When paid		Comp & 12 months
Offers	2 offers		Office & staff		Neither office nor staff retained
Results	Vendor playing more sports and travelling

No. 2
Fees sold	£230,000		Where		Avon
Qualified	FCA		Age		66
Time scale	5 months		Type of Practice		Sole Practitioner
Payment	3 tranches		How paid		40%, 30% & 30%
Multiple	1 x fees		When paid		Comp, 12 & 24 months
Offers	1 offers		Office & staff		Office closed, some staff retained
Results	Vendor spending more time with grandchildren

No. 3
Fees sold	£125,000		Where		Berkshire
Qualified	QBE		Age		63
Time scale	4 months		Type of Practice		Sole Practitioner
Payment	2 tranches		How paid		50% & 50%
Multiple	1 x fees		When paid		Comp & 12 months
Offers	4 offers		Office & staff		Office and staff retained
Results	Vendor helping with handover for 12 months before retiring

		Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks. If you want to meet with Nicola Draper to talk about selling your practice in confidence, then please contact me so that I may arrange an appointment for you. You can call me on 01788 816440 or email me at d.crawley@draperhinks.co.uk. I also deal with all the buyers for Draper Hinks so if you are thinking of buying fees please get in touch.
*Diane Crawley, Office Manager*

Testimonials Here are three testimonials from vendors that were happy with the service offered by Draper Hinks in 2018:-
Testimonial 1 “I found Draper Hinks via a mail shot. I spoke to three brokers in total and Draper Hinks were the best. There were not many problems during the process, so I didn’t need a lot of hand holding. First impression was that they were nice people to deal with. My advice is that you should use a broker if you don’t have a ready buyer of your own and make sure you have a good lawyer!” Vendor – Graham Flight Sussex
Testimonial 2 “I had a personal recommendation to use Draper Hinks by a third party independent business coach. I liked what I read on their website. There was a lot of useful and positive information. The business was very efficient. The advice proved to be very useful. My first impression was that I got a good response from talking to Nicola. It is a well tried and tested approach, so don’t mend what is not broken. I was fully satisfied with my experience of working with Draper Hinks. It took all the pressure out of trying to find a serious buyer. It also helped a great deal that I could call on Nicola’s experience. You need someone to advise on what needs to be done. Only sell on your own if you want to take on a lot more administration and pressure.” Vendor – Richard Trimmer Berkshire
Testimonial 3 “I heard about Draper Hinks when I was looking to buy fees and I knew someone who had used their services and they gave a glowing testimonial. I decided to use Draper Hinks and was pleased with the way I was dealt with. Working with them was very good. My first impression was that they were positive and helpful. The process was thorough. Working with Draper Hinks was good because they responded quickly, took a keen interest in what was going on and were very supportive. Nicola was the gatekeeper between potential buyer and the seller, where the buyer was trying to make direct contact with the seller. Selling on your own would not generally give the individual the independent view the broker provides. A broker is likely to reach a lot more buyers than an individual selling his/her wares.” Vendor – Gary Brewerton Oxfordshire

Talk to Nicola Draper about selling your practice

Have you thought about selling your fees but are not sure what to do or when to do it? Nicola would like to talk to you.

Nicola would be happy to meet with you at our offices at 60 Regent Street in Rugby or alternatively you can have a telephone conversation or Skype call. To arrange an appointment please contact Diane on 01788 816440 or email her at d.crawley@draperhinks.co.uk

We are keen to talk to you to help you with your decision as to when and how to sell.

Income Multiples Paid in the last 15 months

		Average income multiple paid	Lowest income multiple paid	Highest income multiple paid	Lowest income multiple offered	Highest income multiple offered
2018
Q 1	Jan – Mar	0.93	0.50	1.05	0.50	1.05
Q 2	Apr – Jun	0.95	0.65	1.07	0.65	1.10
Q 3	Jul – Sep	1.02	0.80	1.30	0.50	1.50
Q 4	Oct – Dec	1.06	1.00	1.15	1.00	1.15
	Average	0.99
2019
Q 1	Jan – Mar	1.03	0.75	1.30	0.50	1.30

David’s Diary

Welcome to the third instalment of David’s story since selling his practice through Draper Hinks in October last year.

We are now working on the 18/19 accounts and tax returns for clients, where this will be their first experience of the new firm. So we are keen to make sure that as far as possible it is as smooth a transition as possible. There have been a few niggles. For instance the merging of data threw up some anomalies even though we both used the same software. A few clients suddenly found themselves directors of companies they knew nothing of or in some instances the transferred income data was partially incomplete. It is impossible to spot all this so when it gets under the radar it becomes a matter of taking a deep breath and spending time talking with the client to reassure them and keep calm.

Initially a lot of my time was spent in talking to clients and exchanging e-mails to show I was still around and had their best interests at heart. In fact I had more time for this than before as much of the routine work is now delegated. I also had to set up and prepare files to help the accounts team with each client and explain how we did things. A lot of our clients have March year ends and just this last week I have counted 10 staff working on our clients 18/19. It’s great. I can now focus on engaging with clients, trouble shooting and making more of a difference which is what I enjoy most.

Seven months in and I am beginning to get used to working with others!!

Lisa Shenton, Admin Assistant

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