A round up of the year – 2021

2021 has been an unusual year for Draper Hinks.  We had a number of practices that we were looking to sell in 2020 but were put on hold until the Covid situation calmed down.  This meant that at the beginning of 2021 we were dealing with a wave of practices coming on to the market.  February is always a busy …

Do Your Clients Pay Monthly?

I can understand why having your clients pay on a monthly basis would be attractive when running an accountancy practice.  It helps with cash flow and, in theory, there are no bad debts.  That all makes good sense.   But you have to understand that when it comes to selling an accountancy practice, this can cause a problem to the buyer.  …

A difficult case that has recently completed

We have recently completed a case that we started marketing in November 2018.  Yes, it has taken this long for it to go through.  The fees for sale were just below the half a million mark.  The vendor started the process of selling at the end of 2018.  We sent out a mailer to potential buyers and some registered their …

Downsizing to reduce the pressure

We have all had a difficult time in the last 18 months due to Covid 19. From the Draper Hinks view point in March of 2020, we had to shut our doors for months on end.  No sellers were selling and no buyers were buying.  Our business just dropped off a cliff.  It was a very difficult time for us. …

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 …