Potential Seller Newsletter #5 2022

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 370 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.

IT IS NOT AN EASY DECISION TO SELL

You need to have confidence, not just in your decision, but in the person helping you and the buyer you ultimately sell to.  We believe in building strong relationships, and we want you to feel confident through what can sometimes be a daunting process.

We have a strong track record of success in supporting accountants as they make the decision to sell.  Utilising our knowledge and expertise that’s been built up over 20 years, we stand by the side of our vendors, managing the process for them.  We’re here to make the sale as simple and stress free as possible, but we ensure that you’re always in control.  We want to make sure we give you best advice at all times.  We know what we are doing, we have done this for over 20 years, talk to us when you are thinking of selling your fees.  Email me at n.draper@draperhinks.co.uk for a confidential chat.

This is a case study from a practice we sold in 2021:-
Fees sold £265,000 Where Surrey
Qualified ACA Age 62
Time scale 5 months Type of Practice Sole Practitioner
Payment 3 tranches How paid 50%, 25%, 25%
Multiple 1.2 x fees When paid Comp, 12 months, 24 months
Offers 2 offers Office & staff Office and staff retained
Results Vendor is sorting out his vast record collection and continues to add to it.

 

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 n.draper@draperhinks.co.uk quoting the reference.

Ref Where Amount
P5/W1/DHB/13 Oxfordshire Up to £650k
P5/W1/DHB/14 West Midlands Up to £400k
P5/W1/DHB/15 Hertfordshire Up to £200k

 

 

Here are two testimonials from previous vendors:-
Testimonial 1

I have received Newsletters over the years from Draper Hinks.  I liked the feedback on the Newsletters from clients that gave me a very good impression.  They have been very helpful and supportive.  The advice I received before meeting any buyers was fantastic.  I was able to ask questions I would not even have thought of.  I never felt as if I was on my own.  Draper Hinks provided guidance, assistance and experience.  I am now looking forward to having more free time, playing a bit more golf, and having time to travel without having to think about having to rush back to the office.

Vendor – Nick Maughan   FCA                     Berkshire

Testimonial 2

Draper Hinks sent me a Newsletter.  We found them to be really informative and helpful.  Our first impression was that they were very professional and knowledgeable.  We were very impressed with the care shown that made us feel very reassured.  The advice and assistance from Draper Hinks was invaluable, particularly the briefing before meeting with the buyers.  We have now set up a new small business which is much more manageable.

Vendor – Jan Kavanagh   FCA                      Oxfordshire

 

Income Multiples Paid in the last 12 months

2021 Quarter Average income multiple paid Lowest income multiple paid Highest income multiple paid Lowest income multiple offered Highest income multiple offered
Quarter 3 Jul – Sep 0.995 0.6 (1 pmt) 1.25 0.5 (1 pmt) 1.25
Quarter 4 Oct – Dec 0.9475 0.8 1.25 0.8 1.25
2022
Quarter 1 Jan – Mar 0.76 0.6 1.0 0.5 (1pmt) *1.50
Quarter 2 Apr – Jun 1.02 0.73 (1pmt) 1.15 0.6 (1pmt) 1.25

*1.5 x fees was offered but was rejected because it was not a good “fit” between the buyer and seller.

NB None of the above figures are to be reproduced in any way without express permission from Nicola Draper.

Please check out our website www.draperhinks.com where you can:-

  • Download our Guide to Selling and Buying Fees by registering for our e:Book.
  • 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.