June Newsletter 2020

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 305 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.

Nicola Draper founder Draper Hinks

 

 

 

We are back and open for business.

 

The office has been shut for the last three months and all staff were furloughed.  It is now open full time.  Nicola is still shielding but working from home on a part time basis.

How has Covid-19 affected the market place?  The vast majority of our deals that were going through were postponed.  Though we have had two completions whilst we were shut. One vendor was less than a week away from completing and then lock-down happened.  This sale has been put back to the end of the year.  Others are waiting until the furlough scheme ends in October before looking to complete.

As for how the multiple will be affected, it is too early to say.  Meetings are still virtual, making hand over and meetings with the acquired clients difficult.  We will keep you posted.
Here are three case studies of practices we have sold within the last 12 months:-
No. 1  
Fees sold £525,000 Where Birmingham
Qualified FCA & FCA Age 65 & 48
Time scale 12 months Type of Practice 2 Partners
Payment 3 tranches How paid 40%, 30%, 30%
Multiple 1 x fees When paid Comp, 12 & 24 months
Offers 2 offers Office & staff Office and staff retained
Results Snr Partner retired, junior partner stayed on working with buyer in new capacity.
   
 

No. 2

  
Fees sold £300,000 Where Rutland
Qualified FCCA Age 67
Time scale 9 months Type of Practice Sole Practitioner
Payment 3 tranches How paid 33.3%, 33.3%, 33.3%
Multiple 0.6 x fees When paid Comp, 12 & 24 months
Offers 3 offers Office & staff Office & some staff retained
Results Vendor helping with handover and then looking forward to travelling with family
   
No. 3  
Fees sold £200,000 Where Oxfordshire
Qualified FCCA & QBE Age 61 & 54
Time scale 9 months Type of Practice 2 Director Firm
Payment 3 tranches How paid 40%, 30%, 30%
Multiple 1 x fees When paid Comp, 12 & 24 months
Offers 2 offers Office & staff Office shut, staff transferred
Results MD retired to “other things” other director continued working with the buyer post sale

Hello, I’m Diane Crawley and I am the Office Manager for Draper Hinks.

I work primarily with all buyers.  We have various schemes we can offer to our buyers so if we can help you to grow your business please call me on 01788 816440 or email me at d.crawley@draperhinks.co.uk and I will be happy to discuss it further.

Diane Crawley, Office Manager

 

Here are three testimonials from vendors that were happy with the service offered by Draper Hinks in 2019:-
Testimonial 1

I was impressed by the Draper Hinks website, especially by the number and variety of accountants who had provided testimonials, which were clearly genuine.  The process was straightforward, clear and with surprisingly few steps involved.  I spoke to Nicola for an hour and a half before firmly deciding to sell.  I was able to ask all the questions I could think of.  Using Draper Hinks added a note of seriousness, a formality and a structure that would not have existed had two parties unknown to each other just got together to have a chat.  Working with Draper Hinks was very straight forward.

Vendor – Mark Bale FCA CTA                                 Oxfordshire
 

Testimonial 2

I heard about Draper Hinks through a colleague.  I found working with them to be efficient and harmonious.  The process is streamlined but effective.  It was good to work with someone on a personal basis.  Using a broker saves footwork!

Vendor – Tony Mynette  AFA  MIPA                       West Midlands
 

Testimonial 3

I heard about Draper Hinks from their reputation.  People work with people they know, like and trust.  All three apply to Draper Hinks.  Working with them was very good.  They are very well organised, very experienced and there are no false representations.  Working with Draper Hinks got me a higher price and took the pressure off me. 

Vendor – Alan Kennedy FCA                                     Oxfordshire

 

Income Multiples Paid in the last 12 months

Quarter Average income multiple paid Lowest income multiple paid Highest income multiple paid Lowest income multiple offered Highest income multiple offered
2019
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
2020
Quarter 1 Jan – Mar 1.075 0.9 1.25 0.9 1.25

 

 

Hello, I’m Lisa Shenton, an Admin Assistant at Draper Hinks and currently furloughed.

I constantly work on increasing Nicola’s LinkedIn contacts, but for now there will be no invitations going out to join our closed LinkedIn group – Growth through Acquisition with Draper Hinks.  When I get back these will resume.

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, so we can keep you updated.  My emails are being checked on a regular basis.  Please email me at l.shenton@draperhinks.co.uk

 

 

Lisa Shenton, Admin Assistant

 

 

 

Next step

If you have not registered with us and are looking to buy fees then please contact Diane Crawley at d.crawley@draperhinks.co.uk or call her on 01788 816440.