Try the Morgan Cox Accountancy Practice Challenge!
Outcome: An accountant selling her practice lands an additional £80,000
Case Report:
In June this year we received an interesting call from an accountant who was selling her accountancy practice. She was based in the home counties around London and had a good network of fellow accountants whom she approached to float the idea of selling her accountancy practice. Like most vendors who attempt to sell themselves she made quite a few mistakes but in the end she called Morgan Cox Accountancy and ended up landing a cheque for £80,000 more than she anticipated.
She contacted 3 local accounting firms whom she knew and had a reasonable working relationship. Two of these practices did not have the cash flow to pursue her opportunity however one practice was interested. Following a period of due diligence the prospective purchaser made her an offer of £1.1 for every £1 of gross recurring fees which she accepted. Whilst her lawyers were preparing the heads of terms agreement she called Morgan Cox to ask if we thought that this was a fair deal.
We were surprised that she had found a buyer and had gone though the entire process without any legally binding confidentiality agreement! Her prospecitve purchaser had her entire client list including contact details, and she was potentially fully exposed. One hour later the Morgan Cox team had addressed this issue and full legal documentation was obtained from the purchaser.
The vendor was surprised when we told her that it was indeed a sellers market. Our registered database of potential buyers had been growing every day particularly through our free buyer database email registration form on our website. At this point we offered her our challenge. Let us market your practice to our registered buyers to see if we could obtain any more interest on a no obligation basis. If we don't find any interest, then proceed with your current buyer at no cost. It was a no risk proposition and the vendor decided to give us 5 days to see what we could do.
From our 580 active buyers (at the time) we had 9 expressions of interest with 2 firm offers both at the 1.3multiple of GFR. Both had reasonable payment and claw back terms.
4 weeks after contacting us to check that the deal she was being offered the vendor had a new buyer and an additional £80,000.
If you are currently selling your accountancy practice, take the Morgan Cox accountancy challenge today. An easy decision.
