Potential Seller Newsletter #3 2021

Nicola Draper founder Draper Hinks

Hello, I’m Nicola Draper.  I run Draper Hinks and have done so since 2004.   We sell only accountancy fees and I am excited to announce that, since inception, we have completed over 332 deals. 

 

Draper Hinks is very proud of its track record and reputation.  Please feel free to contact me anytime at n.draper@draperhinks.co.uk with any questions.

 

Do you know

Nicola was approached by the ICAEW to speak

At one of their Small Practitioner’s Workshops on the 20th May 2021.  The topic was “Selling through a pandemic how a broker can help”.   She looked at what things a seller needs to take into consideration and also what things a buyer expects when buying a practice.  Nicola has an  excellent reputation and is seen to be the “go to” person for selling accountancy fees. 

 

 

This is a case study from a practice we sold in 2020:-

No. 1

 

 

 

Fees sold

£225,000

Where

Essex

Qualified

CIMA

Age

62

Time scale

8 months

Type of Practice

Sole Practitioner

Payment

4 tranches

How paid

50%, 16.6%, 16.6%, 16.6%

Multiple

1.2 x fees

When paid

Comp, 12mths, 24mths 36mths

Offers

2 offers

Office & staff

Office and staff retained

Results

Vendor stayed on post sale for 2 years to work with buyer.                                

 

 

Here are two testimonials from previous vendors:-

Testimonial 1

Throughout the process I was impressed by the good advice and professionalism shown by Draper Hinks.  They certainly know their subject and they gave me a clear view of all the options available to me.  I always felt well informed and was completely confident in their ability to find a suitable buyer.  I would happily recommend them to other people.

Vendor – Chris Brown  FCA                       Somerset

Testimonial 2

I could not be more impressed by the quality of service provided by Draper Hinks.  I had great support throughout the process with clear administration.  They were friendly, professional and definitely client focussed.  Draper Hinks is the model client service provider.  I would recommend them without hesitation.

Vendor – Richard Brewin   FCA                 Lancashire

 

 

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 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

2021

 

 

 

 

 

 

Quarter 1

Jan – Mar

0.7983

0.4 (*)

1.1

0.15 (*)

1.25

(*) Vendor died, fees transferred on an earn out.  Work done, client paid, % of fee given to the widow.

 

 

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 are thinking about selling, then contact Nicola Draper at n.draper@draperhinks.co.uk or call her on 01788 816440.  Everything discussed will be totally confidential.