TaxAssist sees rapid growth since £1m resale
High street accountancy franchise network TaxAssist completed its first million-pound office resale last year and has since seen "rapid growth" in the practice.
In early October last year, financial services and consulting expert Mike Melling bought the Harpenden and St Albans franchise from Mark Fordham at a multiple of 1.25 of revenues.
Melling told AccountingWEB that the new practice under his management will continue to trade under the TaxAssist brand and that there were no out-of-the-ordinary terms and conditions associated with the resale. However, he confirmed that "various measures were put in place to ensure a smooth transition", including client events and a handover period where Fordham has been present. Since completion the practice has continued to grow.
Despite a backdrop of high street and retail failures, he has already expanded the territory to include Radlett and Shenley, and is looking to double the 850-client base over the next five years. Since October the number of clients has already risen by 50 up to 900 in total.
Last month he told whichfranchise.com: “The more I found out about the growth and success of the TaxAssist Accountants model and the more I talked to people at the Norwich support centre and around the network, I became convinced that this was the business I wanted to buy into and continue to grow.”
Melling plans to develop the business with his wife and two children, and sees the asset as an opportunity to build over the long-term.
Karl Sandall, chief executive of TaxAssist Accountants added: “Clearly we are thrilled to have achieved this landmark sale; it is a testament to the strength of our business model that we are achieving these kind of resale figures and still achieving double digit growth year on year.
"Three years ago we successfully exported the model to Ireland and now have our eyes firmly set on Canada, the US, New Zealand and Australia. Having an international presence can only help increase the value of our brand.”
TaxAssist was set up in 1995 and now operates more than 200 offices with more than 42,000 small businesses clients in the UK.
TaxAssist has written a free guide on franchising: The Franchise myth. Pros and cons of a franchise