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Nicola Draper Founder of Draper Hinks |
We have been contacted by a number of sellers that do not want to have to deal with MTD next year. I believe that some will leave it to the last minute and I am expecting there to be a rush of vendors wanting to sell with little time to spare. Have a regular look at our website to keep up to date with our practices for sale. We update it every week to give information about all cases we are dealing with. It’s always best to be pro-active Email me at n.draper@draperhinks.co.uk. |
There are many ways to put in an offer
If you are thinking of buying a practice or part of a practice, there are many ways for a buyer to put in an offer.
The industry default for practices above £150k is to pay a third on completion, a third at the end of 12 months and a third at the end of 24 months subject to retention of the clients.
However, there are countless ways in which an offer can be structured and here are some examples received in the last three months:-
Example 1 – The buyer offered to pay 24 equal monthly instalments, no clawback.
Example 2 – The buyer offered to pay 80% on completion, with no clawback
Example 3 – The buyer paid a third of the total fees on completion and then a set amount every month for the next 36 months irrespective of retention.
Example 4 – The vendors were paid 15% of the client invoicing value per month, payable at the end of each calendar month for a period of five years following client transfer, subject to a cap of £2,000 per month.
If you are unsure about how to structure an offer, we are happy to advise. Contact me at n.draper@draperhinks.co.uk
It’s not always ‘plain sailing’ but this situation provided a useful lesson to us all
Read this Vendor’s Story with details of multiple paid
Practices for Sale
| Reference | Area | Amount | Description |
| 760/250908 | Shropshire | £586,635 | 2 vendors both looking to retire. Top 20 clients’ fees total £149,704. Buyer needs to be FCA/ACA or FCCA/ACCA qualified. 6 staff, 1 ACCA qualified and 5 AAT qualified. Leasehold premises available if required but it is not a condition of the sale that the buyer takes them on. Meetings with vendors will be arranged on an individual basis. |
| 755/250811 | West Sussex | £170,000 | Vendor looking to retire. Buyer needs to be FCA/ACA or FCCA/ACCA qualified. 5 staff, 3 will not stay post sale. Leased premises, not condition of sale that buyer takes them on. Top 10 clients’ fees total £39,010. Meetings with vendor will be arranged on an individual basis. |
| 753/250804 | Devon | £75,000 | Vendor looking to retire. Practice is not VAT registered but most clients are VAT registered. Buyer needs to be FCA/ACA or FCCA/ACCA or CMAAT/AAT or CTA. No staff and no premises so the fees need to be transferred to buyer’s office locally. Top 11 clients’ fees total £35,762. Virtual meetings with vendor will be arranged on an individual basis. |
| Details of another deal done in 2024 | |||
| Fees sold | £281,000 | Where | Surrey |
| Qualified | CIMA | Age | 66 |
| Time scale | 7 months | Type of Practice | Sole Practitioner |
| Payment | 3 tranches | How paid | 40%, 30% & 30% |
| Multiple | 1.1 x fees | When paid | Comp, 12 months & 24 months |
| Offers | 2 offers | Office & staff | Staff transferred & Office closed |
| Results | Vendor helped with short handover, then worked on reducing her golf handicap | ||
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 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 |
| 2025 | ||||||
| Quarter 1 | Jan – Mar | 1.06 | 0.50* | 1.20 | 0.50 | 1.20 |
| Quarter 2 | Apr – Jun | 1.016 | 0.85 | 1.20 | 0.50 | 1.20 |
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 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 spent many decades running my accountancy practice before deciding to retire. I had a Newsletter from Draper Hinks and was impressed with the format. It had concise, relevant information. I called and spoke to Nicola and was impressed with the advice that was freely given, so decided to instruct Draper Hinks to sell my practice.
Working with the team was very easy. It was very pleasant dealing with people who were co-operative and friendly. My first impression was that the team certainly knew their stuff and I could easily work with them.
The process was lucid, concise and first class all round. I was concerned that there would not be anyone interested in acquiring a one-man band practice but was pleasantly surprised that several buyers expressed an interest. None of the process was difficult, it all went extremely smoothly, contrary to my expectations. I would certainly recommend Draper Hinks if the opportunity were to arise.
K C M Anderson ACCA APPA (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 also 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.