This is a particularly unique opportunity for a practitioner or firm to join this dynamic south side Canberra based accounting practice as part of its longer term succession plan.
The current principal wishes to introduce a new partner through the partial sell down of equity of say up to 50% to underpin the firm’s continuing growth and their longer term succession. This desired outcome could also potentially be achieved through a merger.
Ideal suitors will be either locally based or firms from further afield who would benefit from a footprint in the nation’s capital to target opportunities such as government work.
However, as a result of this firm’s services and clients, prospective purchasers will need to bring more than simply cash to the deal. This is the type of practice that many aspire to be. An ability to support and drive growth will be important. The successful party will need to learn and implement this firm’s successful processes and procedures. Experience and competence in working with more significant clients will also be important. An established fee base is also a must.
Fees passed $1 Mill last financial year. The usual range of compliance services are provided by the firm, with a particular focus on the SME market and the provision of profit improvement advice through the implementation of strong processes and programs.
Tax lodgements are heavily focused on trusts, companies and super funds, with almost a third of the firm’s revenue generated from management advice services. 60% of revenue originates from fixed fees, including for the management advice, the majority of which are paid monthly.
Clients range from young professionals to those selling their businesses. Most are blue chip with several market leading performers. Clients number around 160 groups with an average client size of $6K+. Over 80% of revenue is contributed by annual fees ranging from $5K – $30K+.
The top 20 client groups contribute almost half of annual fees with the largest client equating to $72K. Most of these clients are located in Canberra and range in age from their late thirties to mid seventies. Half of these contacts are below 60 years of age.
Whilst the firm does not offer financial planning services directly, it does have links to a specific adviser with a strong proportion of this practitioner’s clients linked to the accounting firm.
The vendor intends to stay involved in the firm and the profession for at least the medium term. Its current offices are owned by a related party with an intent to remain at this location following the transaction.
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.
