This established, family oriented, high touch, high communication, Lower North Shore CA firm enthusiastically seeks an acquisition, with fees ranging from $500K to around $2.5 Mill, to contribute to their growth strategy.
The firm proactively focuses on compliance as well as tax advisory / planning services. Services such as audit, financial planning, insurance and bookkeeping are not currently offered. Ideally the services offered by the vendor will be similar, although there is an approach to address differences in service offerings.
The purchaser’s typical clients are individuals, a variety of small businesses, and investors, whom are located predominately in the Sydney metro area. The clients’ typical average fee size is around $2K – $3K with few above $10K per annum. The vendor’s clientele will desirably reflect this also, with a greater focus on businesses and investment entities, few cash clients, and a strong utilisation of bookkeeping programs by businesses. The purchaser utilises fixed fees which are reviewed annually and advised in advance.
There is a one to one ratio between professional and administrative personnel, some of whom are based in the Philippines. Clients have a high interaction with multiple contacts within the firm. Staff are structured in pods with senior personnel, guided by the firm’s leaders, based in Sydney, supervising teams in the Philippines, to ensure the same team are working on the same clients each year. Employment agreements are mandatory for staff with performance targets also expected to be achieved.
The purchaser wishes to work with the vendor to identify the best approach to transition, which would ideally take place over 1 – 2 years, with their initial involvement on a full-time basis and then scaling back to a couple of days per week accompanied by a commensurate remuneration.
The firm would remain in its current location for a minimum period of 12 months (ie the retention period), before considering any change in location. It is expected that all key personnel would be retained. The purchaser has recently transitioned from MYOB AE to Xero, which would be their preference, although MYOB and Handisoft are also options for the short term.
Looking for a change or is it time to progress onto the next stage of your life? 2020 has certainly been a challenge for practitioners, staff and clients alike. Trends tell us that we are now at the start of a period of ever increasing firm sales, thus anyone considering an exit needs to be at the start of this phase to maximise their outcome.
This purchaser has indicative pre-approval for finance, thus is ready and able to complete a transaction now. They have had previous acquisition experience and are offering favourable and market competitive transaction terms and conditions.
To discuss this opportunity further, please contact Michelle Knights via e-mail michelle@robknightsbroking.com.au or mobile on 0413 047 077 for a completely confidential discussion.
Please note, Rob Knights Practice Broking Pty Ltd is representing the purchaser in this proposed transaction. Hence, no fees or charges are payable by the vendor in relation to this particular proposal.
