|Nicola Draper founder Draper Hinks||
Do you know what options are available to you when you sell?
Some vendors are paid a one-off fee with no clawback. Some vendors are paid in two tranches, one on completion and one after 12 months, with clawback. Some vendors are paid in three tranches, completion, after 12 months and after 24 months. Other vendors are paid on an earn out basis where no money is paid on completion. Other vendors are paid a lump sum on completion and then the rest on an earn out. Which one is applicable to your situation?
|This is a case study from a practice we sold in 2020:-|
|Fees sold||£250,000||Where||West Midlands|
|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.|
Are you a seller in one of these areas?
This is only small sample of some of the buyers registered with us, we have many more that are keen to buy. These buyers have specifically asked us to find a seller for them in your area and are keen to proceed. If you are interested in finding out more, then please contact me, Nicola Draper, at email@example.com quoting the reference.
|P2/W1/DHB/4||Buckinghamshire||up to 500k|
|P2/W1/DHB/5||Bedfordshire||up to 200k|
|P2/W1/DHB/6||Gloucestershire||up to 100k|
|Here are two testimonials from previous vendors:-|
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
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
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.
If you are thinking about selling, then contact Nicola Draper at firstname.lastname@example.org or call her on 01788 816440. Everything discussed will be totally confidential.