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Draper Hinks Newsletter Issue 1 2020 |
 Nicola Draper founder Draper Hinks |
Hello, I’m Nicola Draper. I run Draper Hinks and this year will be our 20th Anniversary. We sell only accountancy fees and I am excited to announce that, since inception, we have completed over 300 deals.
We are very proud of our track record and our reputation. Please feel free to contact me anytime at n.draper@draperhinks.co.uk with any questions.
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| Sell your fees through Draper Hinks |
| Did you know that in 2019 we helped over 40 vendors to sell their fees?
We do understand that selling your practice can be a hard decision to make. Our vendor Adrian Lawrence said the most difficult part of selling his practice was “Actually deciding to do it!” Ian Dobson, another vendor, said that the hardest part was “Deciding to sell.” We are happy to talk to you before you even make the decision to sell your practice. Mark Bale, another vendor, said he spent over an hour and a half on the phone with Nicola asking all the questions he could think of, before committing himself to the process. Please contact Nicola at n.draper@draperhinks.co.uk or phone her on 01788 816440, to see how we may be able to help you. |
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.
| Here are three case studies of practices we have sold within the last 12 months:- | |||
| No. 1 | |||
| Fees sold | £616,077 | Where | Norfolk |
| Qualified | FCCA | Age | 68 |
| Time scale | 13 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 50%, 25%, 25% |
| Multiple | 1 x fees | When paid | Comp, 12 & 24 months |
| Offers | 2 offers | Office & staff | Office and staff retained |
| Results | Vendor working with buyer for 2 years then reducing time commitment | ||
| No. 2 | |||
| Fees sold | £344,000 | Where | Nottinghamshire |
| Qualified | FCCA | Age | 51 |
| Time scale | 5 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 50%, 25%, 25% |
| Multiple | 0.8 x fees | When paid | Comp, 12 & 24 months |
| Offers | 2 offers | Office & staff | Office closed, some staff retained |
| Results | Vendor had died thereby precipitating the sale, no handover hence reduced multiple | ||
| No. 3 | |||
| Fees sold | £200,000 | Where | Surrey |
| Qualified | FCA | Age | 64 |
| Time scale | 5 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 33.3%, 33.3%, 33.3% |
| Multiple | 1.1 x fees | When paid | Comp, 12 & 24 months |
| Offers | 3 offers | Office & staff | Office closed, staff transferred |
| Results | Vendor helped with hand over then happily moved away from accountancy | ||
 Diane Crawley, Office Manager
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Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks. If you want to talk about selling your practice or meet with Nicola face to face, 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.
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| Here are three testimonials from vendors that were happy with the service offered by Draper Hinks in 2019:- |
| Testimonial 1
I heard about Draper Hinks from an accountancy publication. They were very straightforward and easy to work with. The process guided me from my initial contact to the agreed sale without any problems. They offer a friendly, efficient and knowledgeable service. Using Draper Hinks definitely reduced stress levels and sped up the whole process. Vendor – Peter Wyatt FCCA West Midlands
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| Testimonial 2
I chose to work with Draper Hinks because of their excellent reputation. My experience of working with them has been very positive. They offered timely assistance throughout with expert practical support as well as considerate and kind personal support. We had prompt communication and realistic advice. Using Draper Hinks provided an expert sounding board which enabled the sale to proceed more smoothly. Vendor – Mark Hooton FCA Hampshire |
| Testimonial 3
I was introduced to Draper Hinks by a business coach. I liked Draper Hinks and valued their advice. The admin team were great and Nicola Draper was outstanding and was always available to talk to. They were all very professional. The process was easy and not time consuming for me. Using a broker saves time and Draper Hinks has years of experience so why do it yourself. The most difficult part of selling my practice was making the decision to do so. Vendor – Jodie McDermott FCCA Warwickshire
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Income Multiples Paid in the last 12 months
| 2019 | 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 | 1.01 | 0.6 | 1.3 | 0.39 | 1.3 |
| Quarter 2 | Apr – Jun | 0.96 | 0.6 | 1.4 | 0.6 | 1.4 |
| Quarter 3 | Jul – Sep | 1.1 | 1 | 1.2 | 1 | 1.25 |
| Quarter 4 | Oct – Dec | 0.9125 | 0.7 | 1.1 | 0.65 | 1.2 |
David’s Diary
After 35 years in practice I sold in September 2018 and it is only now that I feel I am nearing the point where I can take more of a back seat and catch up on those things I hoped I would be doing. That 3-day week beckons.
It was definitely the right decision to sell and to stay on. It was not as easy as I imagined but our retention rate is much higher than it would otherwise have been, we have retained at least 90% of our clients and added more referrals to compensate for the ones lost.
There have been clients who would be happy with whatever firm I sold to. Others needed reassuring. A few reacted badly to the change and one or two tried to take advantage of the move. A large majority seemed to be pleased for me and very understanding.
Whilst I have no real authority within the firm I do have an interesting day. With the transition there have been flurries of forms and letters of engagement. We have had to get them used to using the portal. Some clients forget that they may not receive a paper invoice or e-mail copy, so fall behind. I have been acting as a go-between to help maintain goodwill.
What has been interesting has been the mixed reaction to the sale. For me, the practice had become a way of life and yes there have been disappointments when a client has decided to leave but it was certainly the right decision for me. Time to smell the roses.
David Shackleton FCA – sold his practice through Draper Hinks
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Lisa Shenton, Admin Assistant
Next step
Why not arrange an appointment to come and see us at our offices in Rugby to talk about your situation and how you may want to sell your fees. We can perhaps offer you some good advice. Contact Diane Crawley at d.crawley@draperhinks.co.uk or call her on 01788 816440.