This Sydney CBD based, two partner, highly profitable, CA firm, is proactively in search of an acquisition with fees up to $1.3 Mill to contribute to their growth strategy.
The firm’s strengths are in the servicing of its predominately business clients in the areas of accounting, compliance, tax and tax advice, as well as superannuation. Financial planning services are also offered through an associated entity. Services such as bookkeeping, audit or insolvency are not currently offered by the firm.
The purchaser’s typical clients are broad ranging including professionals and builders with typical average annual fees of around $10K, some of whom are invoiced monthly, whilst the balance of revenue is collected upon job completion with payment within seven days. Ideally the vendor’s clientele will be similar in nature. However, a spread of clients by age will be important.
Client communication is initially in person, as is specific advice. Otherwise, communication typically takes place via technology such as emails, as well as via telephone. That said, the firm will implement and utilise whichever communication approach is desired by each client group. The firm is proactive in its processes and procedures.
Each partner manages their own team of personnel with senior personnel involved in managing more junior new staff. Staff are also encouraged to engage with clients with senior personnel included as part of, or facilitating, client meetings. The vendor’s personnel would also have a home as part of the transaction. Training takes place once every two weeks, either online, via external providers or through peer presentations. Reviews, both performance and remuneration based, are conducted every six months. Employment agreements are utilised by the purchaser’s firm with this expectation shared of those joining the firm as part of this activity. Flexible working conditions currently see staff working from home two days per week, whilst three personnel work remotely. Monthly and year end social gatherings also take place.
Utilised software includes XPM, Xero for tax, Xero for clients, BGL, NowInfinity, as well as Monday.com for workflow management. Software utilised by the vendor isn’t of concern, although it would be helpful if it was Xero, as this will be the common approach post acquisition.
The transition activities of the vendor will be negotiated but flexible, albeit including client introductions and briefings for say twelve months, perhaps longer where agreeable to both parties. The vendor will be remunerated during this time in accordance with the market and their ongoing involvement.
This acquisition is desired as soon as practical, with finance and market terms on offer. Plant and equipment won’t typically be required unless the acquisition is going to remain in the vendor’s office as part of the initial transition. Our client offers the opportunity for a smooth transition and a long-term home for a retiring practitioner’s clientele and staff. They are flexible, well structured, have available capacity, and are implementors of technology.
Are you based in Sydney’s CBD and hoping to achieve a transaction by July 1? This could be your opportunity. Trends tell us that we’re now at the start of a period of ever-increasing practice sales, thus anyone considering an exit needs to be at the start of this phase to maximise their outcome.
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.
