This Perth CBD fringe based, multi partner, long standing firm is proactively in search of an acquisition with fees up to $1.5 Mill to contribute to their growth strategy.
The firm, which was established in the 1980’s, focuses on providing accounting and tax, tax planning, business advisory, audit, succession and estate planning, asset management and retirement planning. The office predominately services mum and dad type business clients representing a range of industries.
The purchaser’s typical clients have an average annual fee ranging from $4K – $6K based on average charge rates of $250 – $280 per hour. Ideally the vendor’s clientele will have an average annual fee of at least $2 – $5K. A more mature client base is not of concern but would need to be predominately business clients. The purchaser’s client base is a mix of clients with regular interim work as well as those that are serviced once a year. Client communication is generally via e-mail, telephone or via visiting the client, generally at their business premises.
Staff generally manage their own work based on prior client servicing, with a fair degree of direct communication with clients, on occasion a client maybe serviced by a different staff member in the firm based on workload balances. Staff have flexible work hours to a degree. The vendor’s personnel would ideally transfer to the purchaser. Performance targets are informal and not rigorously measured with the focus more so on keeping track of work being completed and lodged. WIP is reviewed monthly with other data with the focus generally around macro targets. Employment agreements are utilised by the purchaser’s firm and would be required for any staff joining the firm as part of this transaction.
Utilised software includes Xero, FYI Docs, Class, Castaway for cashflow projections while clients are typically utilising MYOB or Xero.
The vendor(s) would ideally be available to assist with the transition for at least the first 12 months on a reducing basis, however there is also the opportunity to have an ongoing role where the burden of managing a practice can be assumed by the purchaser, leaving the vendor to perform the work they still love, being the servicing of clients. 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 preapproved and very competitive market terms on offer. Plant and equipment is unlikely to be required as the purchaser currently has excess capacity in their premises, however some hardware may be needed. Due diligence will be focused on understanding the profile of the clients with cultural fit the key between the two firms.
As previously highlighted, the firm has excellent longevity, with long term staff and partners, stability and internal succession, a good reputation amongst its peers and personnel, potential upcoming equity opportunities with a desire to promote from within. The firm’s reputation is its strongest asset.
Are you a one or two partner firm located either north or south of the river with a client base that would transition to the purchaser’s premises adjacent to the CBD? Are you currently considering your succession options? Where so, this is an excellent opportunity to secure the future for your clients, staff and yourselves.
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.
