A dynamic practice with excellent prospects for its future owner
This long standing firm was originally established in the early 1960s and has been located in its current location, approximately 15 kms south of Sydney’s CBD, for almost a similar length of time. Fees are circa $1 Mill. It largely services clients within the St George and Sutherland Shires along with some clients from further afar.
Various services are offered from basic compliance to more complex structuring advice, and establishing structures appropriate to clients’ needs. Business consulting services are also provided to a number of clients for whom quarterly reporting takes place along with year-end tax planning. The client mix is a combination of sole traders, younger individuals building wealth, current and future business owners, high NWIs and multigenerational family groups. Clients span a broad age range, in a broad range of business circumstances, most of whom are in the growth or maturity phase. Clients are often in trades, professional services or hoteliers / moteliers.
Recent performance has been significantly benefited by sustained growth associated with ongoing client advice regarding optimal entity structuring. As a result, client referrals have been strong. Likewise, the introduction of financial services and the return of SMSF audits in-house could benefit revenue.
Sources of revenue are well represented across lodgement types including I returns (12.5%), trusts (18.4%), companies (32.6%) and super funds (17.3%). Typical fees within these lodgement types are competitive with market. Lodged returns for the 2017 FY were 835 in number at an average of around $1.1K per return.
Annual fees are predominately focused within the $3K – $30K range, which contribute some 68% of total revenue, in particular the $5K – $10K fee range which equates to 24.5% of fees. The average client size is a pleasing $2.8K, which exceeds expectations for a firm of this size. The largest client equates to 4.3% of fees with the top 20 client groups contributing 40% of annual revenue in 2017. These clients range in age from their mid-thirties to their mid-seventies.
Having dedicated almost twenty years to the profession, the vendor now wishes to pursue alternate business opportunities external to this industry. However, a transition of up to 12 months is on offer. The firm’s premises are currently for sale, however a twelve month lease will be available including a three month notice period that can be exercised by either party. Continuity of the firm in its current location would seem ideal for 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.
