ANOTHER QUICK SALE – SOLD IN LESS THAN 4 MONTHS
This represents a fantastic opportunity for an established practice in search of a small bolt-on or for a new principal seeking a manageable fee base as they start out in the profession.
The firm was established some 15+ years ago and has operated in its current location in the Centenary suburbs, approximately 20kms south west of Brisbane’s CBD, for almost a similar length of time. It provides general year-end tax and accounting services to SMEs as well as individuals. It represents an available fee base of around $180K, which offers consistent workflow through the July to April period.
No formal financial planning offering is currently provided to these clients, although some will already have an advisor in this area. Another possible additional service opportunity could be in the area of management advice.
Aging clients are being replaced by new clientele, many originating from participation in a local referral network, as well as via word of mouth. Hence, it will be imperative for the purchaser to remain active within this network, which meets weekly, or risk the possibility of significant client loss.
Tax lodgements for FY 2015 number 282 with an average lodgement size of $671. I return lodgements contribute some 37% of annual revenue, although very few are basic returns not linked to other entities or including rental properties and the like. Trust and company lodgements also contribute some 45% of annual fees.
The average client size is around $1,700 per group with some 69% of revenue generated by clients with annual fees of between $2K and $10K. The top 20 client groups contribute approximately 49% of fees for the 2015 FY.
The principal wishes to retire to follow several hobbies but is negotiable on the transition terms. No staff will accompany this transaction. The fees will need to be relocated to the purchaser’s premises, desirably around this current general area, as the vendor’s premises will not be available.
E-mail practicesales@robknights.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.
