 Nicola Draper
Founder Draper Hinks |
How was your January? Busy as ever?
Have you decided to grow your practice and buy some fees? Now is the busiest time of year for us where vendors want to sell. Make sure you are registered with us. We need to understand what you are looking for so we can put forward only the vendors that match your criteria. We have brokered well over 450 deals so can advise on market rates and how best to buy fees. |
Warning to all buyers!
Please read this.
In 2024 we sold a practice where the vendor accepted 2 payments, one on completion and the other after 12 months, in effect it was a 50/50 split. All was going well until six months after the completion of the deal and the buyer suddenly died. There was no warning.
The son of the buyer stepped in, but he was not an accountant, and most of the clients left. The contract had a clawback clause in it and luckily the first payment was guaranteed against clawback. However, the subsequent payment was wiped out as a consequence of the number of clients that left.
This is the first time this has happened in over 20 years of brokering deals. I know how devastating this was to the vendor and I am now going to suggest to all vendors that they take out a life assurance policy on the life of the buyer. As a buyer I feel you ought to be aware that you may be asked to do this. If you want to discuss this in more detail please email me at n.draper@draperhinks.co.uk.
It helps to have a caring, understanding team when you are going through difficult times.
Read our Vendor’s story with details of multiple paid
Practices for Sale
| Reference | Area | Amount | Description |
| 700/250217 | Norfolk | £567,969 | 2 vendors looking to retire. Top 20 clients’ fees £282,462. Buyer needs to be Chartered or Chartered Certified. 6 staff. Freehold premises available if required. |
| 701/250217 | North Devon | £89,937 | 2 businesses, 1 GRF £61,937 other GRF £28,000. Buyer can buy both or one. Ideally buyer should be qualified. Buyer must be local as there is no remote working and majority of clients visit office. |
| 702/250217 | West Yorkshire | £413,000 | Both vendors looking to retire. Top 20 clients’ fees £109,848. Buyer needs to be qualified. Vendor would like buyer to take on Leasehold premises. Lot of potential. Meetings on an individual basis. |
Details of another deal done in 2024
| Fees sold | £400,000 | Where | Sussex |
| Qualified | QBE | Age | 66 |
| Time scale | 7 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 33.3%; 33.3%; 33.3% |
| Multiple | 1.1 x fees | When paid | Completion; 12 months; 24 months |
| Offers | 3 offers | Office & staff | Office and staff taken on by buyer |
| Results | Vendor looking forward to retiring after hand over & then to go travelling with family | ||
Income Multiples Paid in the last 12 months
| 2024 | Quarter | Average income multiple paid | Lowest income multiple paid | Highest income multiple paid | Lowest income multiple offered | Highest income multiple offered |
| 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 |
| Quarter 3 | Jul – Sept | 1.063 | 0.85 | 1.20 | 0.70 | 1.25 |
| Quarter 4 | Oct – Dec | 0.988 | 0.65* | 1.15 | 0.65 | 1.195 |
NB None of the above figures are to be reproduced in any way without express permission from Nicola Draper.
* One off payment made with no clawback.
Your Guide to Buying
We have been helping accountants sell and buy practices for more than 20 years, and during that time we’ve learnt so much. We have collated all of our knowledge and experience into our new eBook, which is the ultimate guide to buying accountancy fees. You can download your copy from our website for free.
Here is a testimonial from a vendor whose practice we sold in 2024:-
I had a desire to retire whilst I could still enjoy life. I had received Newsletters from Draper Hinks over the years but when I saw Nicola on a webinar, it reinforced my decision to use them.
I found Nicola and her colleagues extremely helpful. They guided me through the whole process. My first impression was excellent. It is so important to be given ongoing extensive guidance when you take a leap into the unknown where everything is new and strange. If you try to sell your practice without the help of a broker, you will make mistakes, may not find a buyer and not get the best results for you and your practice.
I found it hard to let go of my long established relationships with my clients. But I can now spend more time with my wife and family, doing more travelling which I have been looking forward to for a long time. If you are thinking of selling your practice, I can strongly recommend you use Draper Hinks.
Stephen Franklin FCA CTA (Permission given to use his name)
Please check out our website www.draperhinks.com where you can:-
- Download our Draper Hinks Buying Fees eBook.
- Read our monthly Blogs giving regular market commentary.
- Read our Vendor’s stories about their experiences of selling their practices.
We regularly post on LinkedIn so if you have not already connected with us please visit our page or email Marie Large on m.large@draperhinks.co.uk.
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.