August Newsletter 2020

Did you know that the lock down and Covid 19 has had no effect on income multiples in the market place? 

When Draper Hinks shut the office at the end of March 2020 it was expected that post lockdown buyers would be offering both lower income multiples and extended payment terms.  The assumption was that there would be a lot of practices haemorrhaging clients and there would be no certainty as to what vendors would actually be selling.

However, since opening the office on the 15^th June, not one of the practices we were in the process of selling have had their multiple negotiated down.  Deals have been completed through the lock down period and the multiples stayed at market rate.  Practices new to the market since the middle of June are attracting multiples commensurate with pre-lockdown rates.

This means that the market place has not been affected.  Sellers that wanted to sell at the beginning of the year have had to wait and are now coming forward looking to sell quickly to make up for lost time.   There are deals out there to be done.

Here are three case studies of practices we have sold within the last 12 months:-

I heard about Draper Hinks from a marketing email and a Linked In contact.  I like methodical systems and there is certainly one in place here – very efficient and very clear.  My first impressions were that they were professional and friendly.  There was good communication at all times.  You should use Draper Hinks because they were discreet and targeted appropriately.  The most difficult part of selling my practice was deciding to do it. 

Vendor – Adrian Lawrence FAIA                           Yorkshire

I heard about Draper Hinks from a flyer in the post.  The initial contact was positive.  They were approachable and seemed to be talking sense.  Nicola was practical and communication was good. 

Vendor – Mitchell Langhelt  FCA                            Dorset

I heard about Draper Hinks through accountancy colleagues and journals.  Nicola was most helpful and made it all seem easy and straight forward.  She provided a lot of information.  It was a real pleasure to work with Nicola and her staff.  It is a very professional and friendly company to work with.  You need someone professional and experienced to turn to.  The process they follow is excellent and the service was second to none, nothing was too much trouble.  Don’t even think about doing it on your own.  It is too complex and you need a professional to guide you through the process and get the best price. 

Vendor – Linda Cotterill FCA                                      Worcestershire