| This is a case study from a practice we sold recently | |||
| Fees sold | £400 + | Where | Warwickshire |
| Qualified | FCA | Age | 68 |
| Time scale | 9 months | Type of Practice | Sole Practitioner |
| Payment | Three tranches | How paid | 50% 25% 25% |
| Multiple | 1.1 x fees | When paid | Comp, 12 mths and 24 mths |
| Offers | 4 offers | Office & staff | Buyer kept staff not office |
| Results | Vendor was looking forward to not doing a lot! | ||
We were approached by this vendor in January last year. He was keen to sell his practice because he had had enough. He knew of Draper Hinks from the Newsletters we had sent him over the years and thought he would get in touch.
We had a long chat on the phone where we were able to answer all his questions about the process, how it all worked and what he could expect to get when he sold his fees. 99% of our vendors have not sold before and are very keen to understand what is expected of them and how they can contribute positively to the sale of their fees. Not all vendors sell the whole of their practice, some choose to sell a tranche of fees.
His first impression of Draper Hinks was “excellent” and he thought the process offered was “very good”. Having decided to sell he wanted to just get on with it. He explained that it had taken him a long time to come to terms with letting go of his practice but now that the decision had been made, he did not see the sense in hanging around. We were asked to start working on his sale straight away.
His main worry was about keeping his staff and clients happy. When asked what made him choose the buyer he sold his practice to, he said “the buyer fitted into our way of working”. This is very important. You have to look for a cultural fit. Having the same accountancy packages is always useful as well. If there are not going to be too many changes when a buyer takes over, this will not unsettle the clients and they are more likely to stay post sale, thereby helping with retention.
When asked, what was the most difficult part of selling his practice, he said “The original decision to sell”. At Draper Hinks, we never underestimate how hard it is to sell your practice and pass on the working relationship with your clients to someone else. There is normally a great amount of relief on the part of the vendor, that the clients are now going to be looked after by another professional giving the same level of service. But then there can be a great amount of sadness (not always!) that someone new is going be taking over their care. Please be prepared for how emotional you may get and that it is ok to have the feeling of emptiness after the deal has gone through. Some of our vendors like to have a significant event to look forward to post sale, such as a wonderful holiday or a cruise where they can relax and take plenty of time out to do something they have never been able to do before because of the restrictions of the looming deadlines that have shackled them in the past.
Remember if you want to sell all or part of your accountancy practice or perhaps buy an accountancy practice please get in touch with me, Nicola Draper, on 01788 816440 or email me at n.draper@draperhinks.co.uk. Please feel free to book an appointment with me using this link on Calendly https://calendly.com/draper-hinks/q_a and let me see how I can be of assistance. I look forward to talking to you.