Nicola Draper founder Draper Hinks |
At Draper Hinks we only deal with accountants in practice and have sold many hundreds of practices. We still come across scenarios that we have not seen before because we find that accountants can be very creative when it comes to numbers and how to structure a deal. We have been known to advise on deals that we have not brokered and charge a consultancy fee. It is important that you get the practice you want and it is not nice to find that you have been outbid. |
How long does it take to buy a practice?
The answer is “it depends”. As a rule of thumb if there are no staff and there is no office then you can expect for the deal to take between 3 and 4 months. If there is a member of staff then you will have to factor in the TUPE regulations and this may hold up the process, so expect it to take 5 to 6 months. However, if you are buying a practice with a team of people and there is an office to buy as well, it is not uncommon to expect the deal to take between 9 and 12 months. Can it be done quicker? Of course, but that would normally be under exceptional circumstances. You will see in our table of multiples we completed a deal in under 2 weeks because the vendor had a terminal illness. Talk to us to know more by emailing me at n.draper@draperhinks.co.uk.
Practices for Sale
| Reference | Area | Amount | Description |
| w/680/240904 | Lincolnshire | £60,000 | Vendor selling to concentrate on family business. Practice is not VAT registered. Vendor works from home so fees portable locally. Top 10 client’s fees £18,788. Mtgs Wednesday, 25th September. |
| w/681/240828 | Dorset | £886,956 | Vendor looking to retire. Buyer needs to be Chartered or Chartered Certified with experience of farming clients. 15 staff. Leasehold premises. Mtgs on individual basis. |
| w/682/240827 | Devon | £50,000 | Vendor selling tranche of fees. Average fee in region of £1,050. Fees portable locally. Mtgs on individual basis. |
| Details of a deal done in 2023:- | |||
| Fees sold | £202,200 | Where | Dorset |
| Qualified | QBE | Age | 51 |
| Time scale | 6 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 43%, 28.5% & 28.5% |
| Multiple | 0.86 x fees | When paid | Comp, 12 months; 24 months |
| Offers | 2 offers | Office & staff | Office closed, staff retained |
| Results | Vendor working part time for buyer and enjoying the part time lifestyle | ||
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Testimonial from a vendor whose practice we sold in 2023:- |
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| I was working too much and needed to change what I was doing so I decided to sell my practice. I did not retire, I stayed on working with the buyer but on a part time basis. I had spoken with Draper Hinks over time and my thoughts of the sales process gradually evolved over a period of several years. I knew I had to do something but what not sure what that looked like.
Nicola was very helpful even when the conversations I had with her were merely fact finding and exploring different scenarios. There was never any pressure and I felt that Nicola was trying to find the right option for me, rather than push me towards a deal to generate a fee. I was looking for an unconventional exit strategy. I would happily recommend Draper Hinks to anyone thinking about selling their practice whatever the scenario. Martin Briggs FCA Sold his practice in 2023 (Permission given to print is name) |
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Income Multiples Paid in the last 12 months
| 2023 | Quarter | Average income multiple paid | Lowest income multiple paid | Highest income multiple paid | Lowest income multiple offered | Highest income multiple offered |
| Quarter 3 | Jul – Sept | 1.107 | 1.00 | 1.30 | 1.00 | 1.30 |
| Quarter 4 | Oct – Dec | 0.918 | 0.35* | 1.10 | 0.35 | 1.10 |
| 2024 | ||||||
| Quarter 1 | Jan – Mar | 1.05 | 1.00 | 1.20 | 0.85 | 1.20 |
| Quarter 2 | Apr – Jun | 0.998 | 0.80 | 1.13 | 0.65 | 1.20 |
*This deal completed in less than two weeks due to the terminal illness of the vendor.
NB None of the above figures are to be reproduced in any way without express permission from Nicola Draper.
Next step
If you are thinking about buying, then email Diane Bester at d.bester@draperhinks.co.uk or Marie Large at m.large@draperhinks.co.uk. Alternatively call us anytime on 01788 816440.