 Nicola Draper founder Draper Hinks |
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How a buyer can introduce themselves to clients
We sold a practice tail end of 2020. The buyer was frustrated that he would not be able to meet face to face with the new clients to start building a relationship with them. Instead, what he did was he worked on a video that he forwarded to the vendor. The vendor then sent this video to all her clients which she attached to her email announcing she was going to be retiring. In her email she was able to say why she had chosen this buyer and why the clients should stay with him. It worked really well and perhaps that is something you could think of doing yourself?
Practices for Sale
| Reference | Area | Amount | Description | ||||
| 414/210223 | London | £500,000 | Vendor looking to retire. Total of top 30 fees £60,316. Rented office if required but not condition of sale. Buyer needs to be Chartered or Chartered Certified. | ||||
| 416/210303 | Cambridgeshire | £200,000 | Vendor downsizing. Buyer must be Chartered, Chartered Certified, FMAAT or AAT. Total top 20 fees £53,089. | ||||
| 421/210318 | Bedfordshire | £170,000 | Vendor looking to retire. Total top 16 fees £56,105. Buyer needs to be qualified. Ideally buyer to take on leasehold premises. | ||||
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This is a case study from a practice we sold in 2020:- |
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| No. 1 | |||||||
| Fees sold | £250,000 | Where | West Midlands | ||||
| Qualified | QBE | Age | 57 | ||||
| Time scale | 8 months | Type of Practice | Sole Practitioner | ||||
| Payment | 3 tranches | How paid | 50%, 25% & 25% | ||||
| Multiple | 1.28 x fees | When paid | Comp, 12 & 24 months | ||||
| Offers | 3 offers | Office & staff | Kept office and staff | ||||
| Results | Vendor worked for buyer for 12 months then retired. | ||||||
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Here are two testimonials from previous vendors:- |
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| Testimonial 1
Two reasons to recommend Draper Hinks. 1) Approachability and ease of communication in an area that can be very emotive and touches on very personal and deeply felt issues = TLC received. 2) No hard sell – just a focus on achieving the right deal for the right reasons for all parties. 3) Level of commitment given is certainly perceived as high. Oopps that’s three – never could count! Vendor – Martin Potts ACA Nottinghamshire |
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| Testimonial 2
I felt very relaxed with the process used to sell my practice. I am more than willing to recommend all sellers talk to Draper Hinks before starting the process of selling their fees. Vendor – Les Harrison FCCA Staffordshire |
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Income Multiples Paid in the last 12 months
| 2020 | 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 | 1.075 | 0.9 | 1.25 | 0.9 | 1.25 |
| Quarter 2 | Apr – Jun | 1.13 | 1.0 | 1.2 | 1.0 | 1.2 |
| Quarter 3 | Jul – Sep | 0.9766 | 0.65 | 1.28 | 0.65 | 1.28 |
| Quarter 4 | Oct – Dec | 1.01 | 0.8 | 1.25 | 0.8 | 1.25 |
Please check out our website www.draperhinks.com where you can:-
- Download our Guide to Selling and Buying Fees by registering for our eBook.
- View lots of video testimonials.
- Read our monthly Blogs that give regular market commentary.
Next step
If you want to buy some accountancy fees and have not already registered with us please email Diane Crawley at d.crawley@draperhinks.co.uk.