Practice Broking
Completing the Sale of Your Practice Doesn’t Finish at the Exchange of Contracts
Are you in the process of selling your practice? Have you found a purchaser and exchanged contracts? Congratulations if you have! However, please know that this is not the end of the process. There still remains some very important activities that need to be performed in the anticipation of settlement and depending on how much…
Read MoreHow do We Determine ‘Maintainable’ Fees or Revenue when Negotiating a Practice Sale?
This is often one of the hardest conundrums for particularly vendors, and we have certainly seen some interesting approaches. I think the first point to note is that generally the vendor, in our experience, will be quite conservative about what fees they feel will transfer across to the prospective purchaser. Now, I have certainly heard…
Read MoreFactors that will Adversely Impact the Sale of Your Practice
As you can imagine, I get to speak to many many people looking to sell or buy professional practices, and it often intrigues me as to what some parties may consider favourable attributes or characteristics when in reality they’re actually not. Now, please let me preface this with, the following examples are not intended to…
Read MoreFive Do’s and Don’ts When Selling Your Practice
Selling your professional practice comes with numerous challenges that should never be underestimated. Achieving a successful outcome, or otherwise, will often be driven by how familiar both parties are with the process, their knowledge of current market conditions, their willingness to be reasonable within their expectations, and their availability of time to work through the…
Read MoreSupply & Demand – The Basics Driving Practice Pricing
So we all know and appreciate the basics of supply and demand. This has been a principle that has been influential upon the transactional market, of particularly accounting firms, for many years now. Essentially, the availability of accounting practices for sale in the open marketplace in many core areas throughout Australia has been limited for…
Read MoreWhat do Current Vendors look like?
What do Current Vendors look like? If research is correct, we are going to experience around 52% of current practitioners, principals, partners, directors, practice owners retiring in the next five years. Furthermore, this number has seemingly increased by over 10% in a year. Such results probably aren’t overly surprising; we have been waiting for this…
Read MoreBeware of the Bogus Broker
Beware of the Bogus Broker I recently received a call from a client who had listed their practice for sale with another supposed ‘practice broker’, wanting to discuss their dissatisfaction with the “broker’s” performance thus far and seeking some advice around what realistic market expectations currently where in terms of transaction times, price and the…
Read MoreMistakes Made with Contractual Agreements
Mistakes Made with Contractual Agreements Most of our colleagues and clients will recall our usual disclaimer ‘we are not solicitors and therefore not providing legal advice’. On that note, the following comments are in keeping with this qualification; we are not providing legal advice. Over recent months we have received a number of enquiries regarding…
Read MoreAcquiring Free Revenue has its Drawbacks
Acquiring Free Revenue has its Drawbacks I’ve now spoken with a few firms who have made acquisitions of fee bases below $1 Mill where several clients have multiple years’ lodgements outstanding. Initially this is perceived as a real win or bargain. Often the deal goes something like this. The purchaser pays a reasonably competitive market…
Read MoreThe Importance of Keeping the Vendor as an Advocate
The Importance of Keeping the Vendor as an Advocate The success or failure of any practice transaction significantly hinges on the ability to transfer client relationships from the vendor to the purchaser. After all, this is essentially what is being transferred, the right to revenue generated from the continued servicing of a group of clients.…
Read More