A long standing established firm with maintainable fees circa $1.1 Mill.
Located in Sydney’s southern suburbs, approximately 30 kms from the CBD, this firm provides accounting, tax, and SMSF audit services. Limited licences are held by the firm’s principals to provide SMSF advice. Throughout its 30+ years of operation, this firm has developed a strong reputation amongst the local community with growth driven by personal and hands-on relationships with clients along with an emphasis on service and outcomes. The partners are particularly hands-on in the firm. New clients are typically sourced through referrals from current and past clients, whilst in some instances, the second generation of longer standing clients are continuing to be serviced.
Tax lodgements for the 2019 tax year numbered 749 in total, 540 of which were I returns, with only 183 not associated with other entities. There were also 15 partnership, 41 trust, 94 company and 59 SMSF returns lodged. Additionally, there are 4 statutory audits, 58 SMSF audits, 76 quarterly BAS and 161 corporate secretarial lodgements. All in all, the average lodgement fee for the period was just under $1.3K.
Maintainable clients number 607 groups with an average client size of $1.8K. Revenue is significantly generated from annual fees within the range of $3K – $20K, as well as the $30K+ fee range, which contributes some 75% of revenue.
The top 20 client groups contributed around 36% of fees for FY 2019. Half have been clients for 30 years, whilst all but one of these groups have been with the firm for 20+ years. These key contacts range in age from their early forties to late seventies; almost half of whom are 70+ years of age.
The vendors propose to retire although they are available for up to six months to assist with a transition. A small proportion of fees, equating to $120K, will be retained by one member of the practice with suitable corresponding restraints. Current lease terms are until December 2020 with a further 3 year period available thereafter where so desired. The option to relocate the firm is also a possibility.
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.
