 Nicola Draper
Founder Draper Hinks |
Another year finished, how was your January? Do you have the interest, inclination and drive to carry on working to deadlines or are you thinking of changing your lifestyle?
We are often very busy at this time of year working with vendors that want to slow down or even stop what they are doing. You don’t have to sell all of your practice to have a better life balance. Why don’t you call me to discuss your options? We have completed over 450 deals so have some experience in these matters. Email me at n.draper@draperhinks.co.uk so we can find a time to talk. |
Warning to all vendors!
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.
There is a way around this whereby all vendors should take out a life policy on the buyer. The vendor is the policy holder but the life assured is the buyer. I felt really bad for the vendor – who was relying on that money to pay for her retirement. If you want to make sure you get paid all follow up tranches when you sell your practice, please get in touch with me Nicola Draper 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
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 on completion with no clawback.
Your Guide to Selling
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 selling 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 print his name)
Please check out our website www.draperhinks.com where you can:-
- Download our Draper Hinks Selling Fees eBook.
- Book a time to talk to Nicola on Calendly using this link:-
https://calendly.com/draper-hinks/q_a
- Read our monthly Blogs that give regular market commentary.
- Read our Vendor’s stories about their experiences of selling their practices.
Next Step
If you are thinking about selling, please contact Nicola Draper at n.draper@draperhinks.co.uk or call her on 01788 816440. You can also book a one-to-one appointment with Nicola through Calendly by clicking here https://calendly.com/draper-hinks/q_a. Everything discussed will be totally confidential.