|Nicola Draper founder Draper Hinks||
|Why our vendors use us:-
Let’s have a chat about how we can help. Email me at email@example.com or phone me on 01788 816440. More than happy to discuss your own situation, in confidence of course.
Round up of 2022 and Market Commentary
On reflection, I would say that 2022 has been a year of consolidation. The vast majority of accountancy practices have had a torrid time having to deal with Covid and all the implied, but it has been a steady year.
Demand from buyers has outstripped the supply of practices for sale, but that is pretty much how it always is. However, I envisage that possibly changing next year. If we have lots of sellers coming to market to avoid having to deal with MTD, there may be more sellers than buyers and that can lead to buyer fatigue. Multiples can come down and there may be some practices that are not sellable as a result.
In October 2022 we had our first case where the multiple offered by the buyer was reduced because the clients were not fully up to speed for dealing with MTD. This may appear to be a little premature but if you are thinking of selling your practice prior to MTD going live then do not leave it too late.
If you want to sell your fees then please contact me, Nicola Draper, at firstname.lastname@example.org or you can phone me on 01788 816440. We would like to wish you every success for 2023 and say thank you for your support in 2022 it is much appreciated.
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 4||Oct – Dec||0.9475||0.8||1.25||0.8||1.25|
|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|
|Quarter 3||Jul – Sep||1.05||1.0||1.2||0.8||1.2|
*1.5 x fees was offered but rejected because the “fit” was not good between buyer and seller.
NB None of the above figures are to be reproduced in any way without express permission from Nicola Draper.
Season’s Greetings from us all