A rare opportunity to secure a sizable firm located on Sydney’s Northern Beaches.
This firm was established on the lower Northern Beaches in the 1970’s with its current leadership taking the helm in the late 1990’s. It is a generalist practice offering a range of tax, accounting, audit, BAS, SMSF and other services to a diverse SME client base both in terms of age and industry. Maintainable fees are circa $920K. One key opportunity would certainly be in the financial planning space. Growth is likely to be generated through referrals and the optimisation of its web presence.
Key sources of revenue are I returns (24%), companies (38%) and super funds (20%) with some statutory audits also performed by the partners who are RCAs. Both partners are also licensed to provide SMSF advice. The firm lodges around 920 returns per annum at an average of around $1K per return.
Annual fees are predominately focused within the $2K – $20K range, which contribute some 71% of total revenue. The average client size is an attractive $1.9K with the largest client contributing approximately $23K per annum in fees. The top 20 client groups contribute some 28% of fees overall. Most of these larger clients are located on the Northern Beaches or North Shore, with key contacts typically ranging in age from their late 30’s to their mid-70’s, most of who have been serviced by the firm for 10 – 20 years.
One of the vendors wishes to retire and transition out over 12 months, whilst the other is available in a longer term non-equity capacity. Whilst there is the potential to relocate the firm locally on the beaches, the current lease does not expire until June 2019. Thus, the purchaser would ideally retain these premises for at least the short term.
E-mail broking@robknightsbroking.com.au to request a confidentiality agreement or phone (02) 9233 4333.
The completion of a confidentiality agreement is essential prior to the supply of any information.
