Selling up

Selling up

Didn't find your answer?

I am getting more and more fed up of the stress of this work and would like to sell, although in reality I need to wait two years until I have less personal financial commitment. I get flyers now and then from selling agents telling me that there are lots of suitors out there waiting to snap up my business for between £1 to £1.3 of £1 of turnover. Does anyone have any experience of whether that it true in reality? At the end of the day anything is only worth what someone will pay and I am not sure in this climate that there are lots of people out there with a spare £180000, maybe there are. Anyone with personal experience of this? I was asked for all my details recently by a selling agent and a few months later was marketed my own firm, so I don't really trust them now. have people used them or is it wiser just to target other accountants yourself. 

Replies (14)

Please login or register to join the discussion.

avatar
By andy.partridge
10th Feb 2014 11:22

It depends

There are good and bad brokers, you just need to find a good one.

If I were you I would have a word with Jeremy Kitchin, who trades under the name APMA. My understanding is he has a very good reputation.

Thanks (1)
avatar
By Steve McQueen
10th Feb 2014 15:33

I've bought and sold a number of times...

... you won't get a cheque, you will get a deal something like 1.1 x GRF with claw up / down spread over 2-3 years with a percentage up front (eg: 2 year deal in thirds with 1/3 on completion at the end of year 1  and end of year 2)

Thanks (1)
Glenn Martin
By Glenn Martin
10th Feb 2014 21:32

More buyers than practices to buy as I understand it.
I have been looking to buy for about 18 months but only come across one where the fit wasn't going to be quite right so pulled out and the guy decided not to retire in the end. I have been registered with loads of agents and not come up with anything. If you wanted to sell you would find a lot of interest but as Steve says you won't get a cheque and walk away you will get your money over about 3'years and you will probably have to stay on for a period for the handover.

Thanks (0)
avatar
By Maslins
11th Feb 2014 09:25

Interested in how you get on

There does seem to be a lot of unknown in this area, as there are few people like Steve above who have actually done it.

Many of us will have considered buying in the early stages, and considered selling when having a bad day, but few will have taken it further than a fleeting thought.

Thanks (0)
avatar
By allan613
12th Feb 2014 12:01

Selling your practice

You could sell for a little less, on a no recourse basis, with all the money up front.

I would not like to guess the percentage difference, but it maybe better that waiting 2/3 years for the full amount, and possibly ending up in an argument on the amount of fees sold, and having to go to court, where the only winners are the two solicitors.

There are always clients who leave when you sell the practice, and it ends up one side accusing the other, of not doing their up most to facilitate a smooth transition, and it is that point solicitors come into play.

Also, it is very important to find a good solicitor to draw up a 'water-tight' sales contract from your side.

Remember, if you go to court it could take another year, at least, before your case is heard which then extends the payment period from 2/3 years to 3+ years.

Good luck.

 

Thanks (1)
avatar
By happy
12th Feb 2014 13:17

Done it three times

I've sold 3 practices over the years my advice use an agent.

I highly recommend Draper Hinks http://www.draperhinks.co.uk/Selling

 

Thanks (0)
By gavin.fernandes
12th Feb 2014 13:46

buying & selling

I have bought 3 practices since commencing in practice in 2006.  I have found that all 3 have been successful for me, and I think they have worked for the vendor too. They have all been very different purchases, and I have certainly learned from each one.

I can't write from the viewpoint of a seller (as I have never sold), but have dealt with three people who have sold.

Two of the purchases were with agents and the third was through a personal meeting with the vendor a couple of years before selling to him.

Regarding some of the hype going round at the moment - I have seen talk of 2 x fees, which I think is excessive.

Happy to liaise with you re thoughts.

I am always on the look out for a good strategic acquisition.

thanks

Gavin

Thanks (0)
avatar
By Jack the Lad
12th Feb 2014 15:05

Selling up

I am happy to endorse Andy.Partridge's comment.   I used Jeremy Kitchin of APMA 5 years ago, and wished I had met him 20 years before !

He will meet you, and let you know the myths and truths, ups and downs, and generally hold your hand throughout the process.   Worth every penny.

Thanks (0)
By gavin.fernandes
12th Feb 2014 15:11

better mention the agent that i like most.....

......ok,

I have also had dealings with Jeremy and his daughter Lucinda - and agree with the above, very professional, and Jeremy has been in the business for very long.  Lucinda picking up the reigns in a very good and managed way.

I must mention Kevin Smith (From Vivian Sram) who I have bought one practice through, and who is also very professional.

So, anyone in the North West London area want to sell their Practice?

Best

Gavin 

Thanks (0)
avatar
By N.Draper
12th Feb 2014 16:17

selling your practice

Hi I am one of the agents you do not trust.  If you call me on 01788 816440 I will happily give you llots of information to help you decide what to do.  You do not even have to tell me your name or where you are based.  We give honest advice that is up to date.  Don't take my word for it -  check out the video testimonials on my website www.draperhinks.co.uk and see what other accountants have said about using our services.  Nicola Draper.

Thanks (0)
Della Hudson FCA
By Della Hudson
19th Feb 2014 16:58

Buying
We're looking to buy and have finance. Interested in bristol/North Somerset but generally finding vendors want to hang on in the business longer than a handover. Nice to have them available for ad hoc consultancy but I'm not looking for a partner even if it is only for a couple of years.

Thanks (0)
avatar
By ilyas11
19th Feb 2014 17:38

Selling Up

 

I agree with most of the above, have bought small one in past and currently in negotiation for another one. Re agents, I found Kevin Smith most straight forward with realistic valuations.

I am always look out for practice, if interested PM me for a chat

 

Thanks (0)
Man of Kent
By Kent accountant
19th Feb 2014 17:58

@David Franks

I can only assume you started this thread when at a low point as you seem to have perked up by last week judging by your comments on this thread

https://www.accountingweb.co.uk/anyanswers/question/competition-london

Pleasant job, easy to make a decent living, blah blah...

;o)

 

Thanks (0)
avatar
By bondss
12th Sep 2014 14:28

Kevin smith Vivian SRAM

So someone has actually managed to get hold of Kevin Smith of Vivian Sram?

You can never get hold of this guy on the phone.

Emails are never answered.

You leave a message on the phone and never get called back.

I would highly recommend APMA.  You can always get hold of someone and the emails are always answered.  Very professional.

 

Also Jobtel were also very good nearly bought a practice but it fell through Julian Hamilton was very good.  I think he has retired due to illness.

 

 

Thanks (0)