At Draper Hinks we like to set up a Meeting Day where the vendor can meet a number of potential purchasers on a one on one basis throughout the day. The rationale behind this is that a vendor is more likely to sell their practice if they meet with more than one buyer.
We vet each buyer to make sure they meet the criteria set out by the vendor ie has the right qualification or is in the right area etc. 99.99% of our vendors have not sold before, but where a vendor has sold a tranche of fees to downsize, typically they will have recent, relevant past experience and know what the process is.
It is important that when a vendor meets with a buyer, they are not on the back foot. They need to be in control of the meeting. It is very easy to feel intimidated buy a buyer that has a turnover much greater than your own, who may have bought several times before.
At Draper Hinks, we appreciate how daunting these first meetings can be with a buyer. This is why we have instigated the vendor having a Coaching Call before any meetings with buyers on the Meeting Day. It is about positioning. The vendor has to feel confident and in charge of the meeting. We therefore make sure that prior to the Meeting Day a Coaching Call is booked.
Nicola will tell the vendor how to bookend the meeting ie the best way to both open and close each of the meetings. By doing this the vendor is taking charge and will impress the buyers with their carefully prepared approach.
At some point in the meeting the buyer will want to know what the vendor would like to be paid in the way of a multiple. It is vital that the vendor has an answer to this question. Nicola will explain what the prevailing current market rate is for the practice that is being sold, taking into account such things as the location, amount of the turnover, age of the vendor, age of the clients etc. You can imagine that each deal is unique and so the multiple requested by the vendor is also unique.
The buyer will also want to know how the vendor wants to be paid and over what period. There are different ways of paying for an accountancy practice. It is important that each way of payment for the accountancy practice is explained so that the vendor can come up with their preferred method and why. These arguments can then be put forward to each of the buyers giving the buyer the opportunity to shape and mould their offer according to the wishes of the vendor.
All buyers appreciate the time taken by the vendor during the coaching call to crystallise their thoughts. If a buyer comes away from a meeting with a vendor, not knowing what the vendor wants in the way of a deal, how can the buyer put forward an offer? It is a matter of professional courtesy to have thought all these things through beforehand.
These are some of the comments we have received from vendors regarding the Coaching Call they had with Nicola:-
- “I did have a Coaching Call – it offered invaluable help and advice. I could not have achieved my sale the way I did without it.”
- “It helped me to present myself and my business much better.”
- “This was probably the most important part of the whole process and made an enormous difference when “interviewing” the prospective purchaser for the first time. I would have been extremely ill-prepared without this session and left numerous questions unasked.”
- “It was most helpful and meant that the conversations with the would-be buyers were very focussed.”
- “It was helpful to go through the things I was going to ask potential buyers, and Nicola made some great suggestions for extra things to ask.”
- “It gave me the tools and knowledge I needed to host the interviews.”
Selling your practice is such an important thing for any vendor to do. Why would you not want to be as fully prepared as possible? I suggest anyone wanting to sell and get the best deal / fit for their practice should only use a broker that offers a Coaching Call before any meetings with potential buyers, but I would say that because I am totally biased. Just saying….
If you want to have a no obligation, confidential chat about your own situation, contact me, Nicola Draper at n.draper@draperhinks.co.uk.
