An interesting offer recently received

At the beginning of this year we were asked to market a practice with GRF of £250,000.  We went to market in the normal way and the vendor had three firm offers, chose one and the deal has since completed. Most offers on a practice of this size would involve three payments. One on completion, one at the end of …

Main points a vendor looks for when selling an accountancy practice

I was recently approached by the ICAEW to be one of their key-note speakers on a webinar about selling an accountancy practice.  These were the main points we, at Draper Hinks, have identified over the years that are most important to a vendor. Right “fit” This is most important to all firms with a turnover below £500,000 where the personality …

One practice for sale, five very different offers from five buyers

Draper Hinks was approached by a vendor in at the end of 2020 to sell his fees.   We sent out our normal mailer and had a number of replies from potential buyers.   The practice for sale was in Leicestershire and under £200,000. The vendor had Zoom calls with all five buyers.  Nicola Draper reviewed all the offers sent in by …

It is important to check the small print in an offer from a buyer

When we market a practice for a vendor, we send a mailer out to potential buyers.  In the mailer it states when the vendor will be available to meet the buyers.  These meetings are primarily done on Zoom rather than the usual face to face.  Once the meetings have been held and feedback has been gathered from all parties, it …

A very recent case study

At the beginning of March this year, Draper Hinks was referred to a case in the North East of England where the owner had to sell his accountancy practice as a matter of urgency.  Here are the bare bones of the case:- Fees less than £50k. No website. Sole practitioner. No staff. Worked from home. Paper based. All cost savings …

Is Keyman Insurance Relevant?

In this age of the Coronavirus Pandemic, more people are looking at their mortality and what to do if they die.  (See previous Blog) But I have had a really interesting conversation with a vendor recently.  He was selling a practice where the buyer had offered to pay three tranches over two years.  This is the most usual way for …

What If I Die?

Oh no not another lockdown!  Covid 19 has affected businesses in many different ways.  Some firms have had a huge upturn in their business and others have seen theirs drop off a cliff.  We have all had to face different challenges with this pandemic.  The number of deaths from the Coronavirus is horrific. How has this affected what we do …

A Vendor’s Worst Nightmare

This is a cautionary tale to all vendors and this is a case that has actually happened. Just over a couple of years ago, we were approached by an accountant in the Leeds/Manchester area who ran a very successful practice.  He was growing it organically year on year and wanted to reach the magical milestone of a million pound turnover.  …

Offers received come in all sorts of shapes and sizes

At Draper Hinks we facilitate the buying and selling of accountancy practices.  We deal with accountants all over the country that want to sell accountancy fees and those that want to buy accountancy fees.  We work on deals of £1m and below.  We have been doing this since November 2004 and have a lot of experience in this field. Over …

How things have changed during lock down

We did expect there to be a slowing down of the buying and selling of accountancy practices during lock down and that was exactly what we found.  However, some things have changed:- Sellers meeting potential buyers Some vendors have insisted on meeting potential buyers face to face.  This can only be done where social distancing is able to take place.  …