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Nicola Draper Founder of Draper HInks |
We are getting a number of vendors approaching us because they do not want to have to deal with MTD next year. If this is you, then you need to get in touch with us asap, don’t leave it too late when there will be a glut of practices for sale and it will be difficult if not impossible to find a buyer. Buyer fatigue is a real thing. We have seen it before in the market place. Don’t get caught out. Email me at n.draper@draperhinks.co.uk. |
Be advised that offers can take many forms
If you are thinking of selling your practice or part of your practice, there are many ways for a buyer to put in an offer.
The industry default for practices above £150k is to be paid 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 innumerable 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 what to expect from a buyer, 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
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 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 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 Selling Fees eBook.
- Book a time to talk to Nicola on Calendly via 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 your accountancy practice, 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.