Potential Seller Newsletter August 2019

				Draper Hinks Newsletter Issue 4 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 290 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.
Here are three case studies of practices we have sold within the last 12 months:-
No. 1
Fees sold	£316,987		Where		South West
Qualified	FCA FCA FCA		Age		68, 66 & 61
Time scale	7 months		Type of Practice		3 Partners
Payment	3 Payments		How paid		33% 33% 33%
Multiple	0.85 x fees		When paid		Comp, 12 and 24 months
Offers	2 offers		Office & staff		Office and staff retained
Results	1 Partner retired, 1 stayed on 12 months and 1 remained p/t for 3 yrs reducing time worked

No. 2
Fees sold	£236,000		Where		Dorset
Qualified	ACA		Age		64
Time scale	8 months		Type of Practice		Sole Practitioner
Payment	2 tranches		How paid		50% and 50%
Multiple	1 x fees		When paid		Comp & 18 months
Offers	2 offers		Office & staff		Office and staff retained
Results	Vendor concentrating on his property portfolio

No. 3
Fees sold	£200,000		Where		Yorkshire
Qualified	FCA & QBE		Age		56 & 57
Time scale	3 months		Type of Practice		2 Partners
Payment	1 off payment		How paid		100% paid at a discount
Multiple	0.65 x fees		When paid		Completion
Offers	2 offers		Office & staff		No office and no staff
Results	Both vendors moved to the south west to retire, enjoy life and relax

		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*

Here are three testimonials from vendors that were happy with the service offered by Draper Hinks in 2018:-
Testimonial 1 “I heard about Draper Hinks through circulars. Draper Hinks has a good reputation. There was an initial meeting that was professional and straight away we felt we were in good hands. We found dealing with them was easy. Nicola was able to anticipate our concerns and quickly gave good advice. There was a lot of information that needed to be pulled together for the report, the buyers said it was a lot more than they were used to seeing. I would be more than willing to recommend Nicola. Without DH to steer us we would never have coped. A broker can help the vendor avoid a lot of the mistakes that might otherwise be made.” Vendor – David Shackleton Cheshire
Testimonial 2 “I found out about Draper Hinks from their mail shots. We met with Nicola a couple of years before the sale and thought DH were a company we could work with. We have found working with Draper Hinks to be excellent. They always responded promptly to our queries. First impression was that they were professional and knowledgeable. The process was seamless. They helped us through what was a new and stressful process. You should use a broker because of their expertise, back up and market knowledge.” Vendor – Robert Miller Hertfordshire
Testimonial 3 “I heard about Draper Hinks from a letter sent in the post. Working with Draper Hinks has been very easy. They are approachable but also very professional. I found them easy to talk to. The interview process with buyers was very well arranged. They were always available to talk. When selling your practice it is important to always have someone else to talk to.” Vendor – Michael Hanby County Durham

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 12 months

2018		Average income multiple paid	Lowest income multiple paid	Highest income multiple paid	Lowest income multiple offered	Highest income multiple offered
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
2019
Q 1	Jan – Mar	1.03	0.75	1.30	0.50	1.30
Q 2	Apr – Jun	0.98	0.75	1.20	0.60	1.20

David’s Diary

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

In 2 months’ time all clients will have been through the “cycle” and I should start feeling the benefits of others doing the work and getting themselves known to the clients. The plan is to reduce my hours and to start looking for consultancy work to benefit myself and in the process generate opportunities for the new firm. One thing is certain we have not regretted our decision. With the steady increase in regulation and red tape we could never have coped and done all the work needed for our existing clients.

Where I had miscalculated was the amount of time it has required to reassure clients that they are in good hands and to deal with any issues that arise, which require my knowledge of the client. It has meant time with my new colleagues to explain our former clients’ backgrounds and special needs. There is a need for greater diligence in maintaining the files so that whoever picks up the job next year has all the information they need and this is all where they expect to find it.

One thing I would suggest is to try and arrange for new referrals generated by the seller to be counted as negative claw back. It is only fair. There will be clients who leave for no apparent reason. There will be those who only see negatives. There will be mistakes by the buyer however hard one tries to avoid them. But for the sale to work well for all concerned there needs to be some motivation for the vendors to generate new business to replenish lost clients in both their interests and the purchasers – there is less clawback and the purchaser stands to get a better deal.

David Shackleton

Lisa Shenton, Admin Assistant

Hello, I’m Lisa Shenton and I am an Admin Assistant at Draper Hinks. I am the person that will be sending these regular Newsletters to you so look out for emails from me in future.

I am also the person to notify if you wish to update your records in any way so please let me know if you move office or change your email address. I can also remove you from receiving any future Draper Hinks correspondence.

Please email me at l.shenton@draperhinks.co.uk.