This well established practice represents an excellent acquisition opportunity for another like-minded traditional firm.
The current partners of this very long standing Sydney city firm are wishing to initiate their succession towards retirement through an orderly transaction and gradual transition enabling the successful transfer of clientele.
The firm currently offers a range of tax, accounting, compliance and audit services equating at around $900K+ in fees per annum, split almost equally between audit and accounting services. Further potential lays in additional NFP audit and virtual CFO services, as well as additional business services where approached appropriately.
Clients are generally located within the CBD and Sydney suburban areas and represent a range of ages. The top 20 client groups contribute some 50% of annual revenue including the largest client who generates around $170K in audit fees. The average tax lodgement size is around $1.4K per annum and the average client group size equates to almost $2.6K per annum. In addition to the 25% of fees that are contributed by the firm’s two largest clients, a strong proportion of revenue is also generated from clients in $3K – $10K annual fee range.
Audits are performed for 27 groups, many of whom are NFP groups in the aged care, associations and research space, as well as other clubs and associations.
The firm’s lease expires in December 2019 with a further option available. However, the practice could also be relocated to the purchaser’s premises presuming they are located within the CBD, or perhaps the adjoining suburbs. The vendors are negotiable in respect of the transition but would preferably like to be involved for say up to a two year period on a part-time basis to ensure client retention. The retention of staff would also be desirable.
Importantly, as the practice will be sold as a whole, it will be imperative that the prospective purchaser hold the appropriate registrations and experience to service the client base in its entirety.
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.
