Member Since: 19th Feb 2016
After doing an undergrad degree in accounting (India) and reading for an MBA in finance (USA) - in addition to taking professional exams in Cost & Works accounting and in Banking - I decided that this is all too complicated. So I spent 35 years buying and selling small businesses, and running them.
My full time occupation now is UK Business Brokers where I assist lower mid market businesses (generally £2m - £50m in t/o) navigate their way to an equity event. I act as a first stop advisory on strategy and help business owners find the right business broker, M&A / corporate finance firm or boutique investment bank to fit their individual needs & exit goals - from MBO to IPO. It's a minefield out there!
I maintain the UK's only database / knowledge base on all the talent in this industry - sector specialisations, fees, fee structures, FCA status, cross border transaction experience, awards won, feedback and reputation ...all sorts!
I'm well connected in the world of corporate finance / investment banking / corporate law, and I love introducing people. Let me know if I can open any doors for you or answer any questions you have about my world.
Consultant UK Business Brokers
13th Oct 2019
I'm not an accountant (in the traditional sense), but I agree with the general sentiment on the page.
The "initial thoughts" you were hoping for are exactly what would be not in your interest because what you need are not initial thoughts; you need wider advice on the topic.
It's because you don't know what you don't know. A good accountant would read your question and understand that what you really need is advice on how to extract profit from a limited company (and do so in a tax efficient way, presumably). That's a much wider question and depends on a whole host of other factors individual to you and to your business.
If I came to you for some marketing advice would your "initial thoughts" be that I should go open a Google Ads account and set up a campaign? I should hope not. I'd get slaughtered and end up spending my annual ad budget in a day.
There are some occasions where the best initial thoughts are "go see a frigging expert".
11th Oct 2019
I maintain a list of the top platforms where businesses are advertised for sale:
There are several business brokers who specialise in the sale of accountancy practices but, TBH, they are unlikely to have very small (£50K) opportunities on their books so it may not be worth approaching them.
Deal sourcing is a skill in itself and there are buy-side brokers like Chelsea Corporate who'll charge a monthly retainer to generate leads (potential acquisitions). I wouldn't recommend them for a deal this small, it's too expensive.
Your best best is to use the above platforms.
You could also approach firms directly - buy a list and start posting some letters.
11th Oct 2019
I have extensive data on fees charged in the industry (M&A / disposals / strategic and transaction advice).
I have detailed information on the fees and fee structures of all the top corporate finance firms (from your Deloittes and Grant Thorntons to your BDOs and MHAs) and most of the smaller ones.
It's my day job to know these things.
Set up a call with me and I'd be happy to have a chat. No charge.
3rd Oct 2019
3rd Oct 2019
I, too, would love to see what this "trading guru" is advising!
Maybe this has something to do with the 2016 reform to substantial shareholding exemption?
3rd Oct 2019
I'm not a tax expert but it doesn't look like the sale of asset transaction is eligible for Entrepreneurs Relief.
3rd Oct 2019
LLPs, to the best of my knowledge, consist of members who are taxed via self asssessment as self-employed individuals. So I'm confused as to how you can even have a corporate partner in an LLP.
1st Oct 2019
meadowsaw227 wrote:I have looked at using a specialist to sell my bock of fees and found the process is heavily weighted in favour of the buyer...
I'm surprised you say that.
The sale of accountancy practices differs in one respect from the sale of ANY other kind of business (in the UK at least).
In general when it comes to selling businesses the intermediary (business broker or whatever) engaged to handle the sale is paid entirely by the vendor. Not so when it comes to selling a/c practices. The bulk of the operators specialising in this sector work on a basis where they are paid by both parties - the buyer AND the seller.
It's a weird setup, but it works for the sale of a/c practices.
Given the broker is not acting on behalf of either the buyer or seller there's no incentive to structure the deal in favour of one party or the other.
28th Sep 2019
While your approach seems logical, it does not take into account phone sales or showroom sales that would not have occurred if the website didn't exist.
Further, while many small businesses - one man bands especially - sell for the kind of multiples you mention, there are plenty of examples of digital assets like websites selling for higher multiples.
There may also be associated assets (subscriber lists for example) that have value independent of that demonstrated by sales / profit generated.
You have rightly deducted monthly fee paid for the software subscription. However, Google SEO is a long term investment, unlike PPC ads (Google Ads).
23rd Sep 2019
I've already told the owners / directors to do that and they're speaking to a couple of accountants.