It is appropriate in the New Year to look forward and try to foresee some of the events over the next year. This focus might prove helpful as we try to return into the swing of ‘work’ post Christmas and New Year celebrations, manage thoughts of dieting and completing year-end tax returns!
To grow a practice over the next couple of years is going to be both necessary and difficult. Organic growth will be limited and the only real method of growing will be through merger and acquisition. This will further stimulate the consolidation of the accountancy marketplace.
As the sole practitioners defer retirement and eventual exit, the quality of client fee portfolios will have to be keenly reviewed. Ageing accountants deferring their exits normally maintain a portfolio of ageing clients. The servicing of those clients and certain client expectations may be diminished by the enthusiasm or otherwise of the 60-year-old, or even 70-year-old practitioner. If you are considering the acquisition of a retirement portfolio it needs to be carefully analysed.
2012 will certainly bring opportunities for utilising more IT, a need for critical mass and specialisation away from the general practice profile. The consolidators have retired, with the exception of Tenon. Vantis and Target have re-emerged in different forms and some small consolidators have developed an unsustainable gearing and have sought protection within larger firms. No doubt the market will continue to evolve, opportunities will arise and the pace of change will continue. The entry into the client portfolio of young 20-30 year olds setting up businesses will bring change. These younger clients will have changed expectations and partners preparing to service the younger clients will need thought and research as the clients build their new age commercial businesses.
Challenges and opportunities! Nothing has really changed.
May I wish you a successful and profitable 2012.
If you are considering selling your practice now or during 2012 then now is the time to prepare.
Foulger Underwood are offering you the opportunity to have your business appraised. This will allow you to answer -
- What is my businesses value?
- What experience does Foulger Underwood have in the market?
- What are the advantages of working with them?
- Is now a good time to sell?
- What costs are involved in selling my business?
During our confidential meeting you will be able to ask any questions specifically related to your business and the marketplace giving you the opportunity to decide if a sale is something you want to progress or not.
Unsure what interest your company will attract?
We can also offer a ‘test to market’ service allowing you to assess the level of interest that your company would attract from prospective purchasers, the profile of the prospective purchasers and an indication of how much your business might be worth, should you decide to commit to a full sale.
In order to arrange a meeting or to discuss the test to market service in more detail, please call Keith on 077688 78656 or if you would rather Keith contact you then please reply to this email with your contact / company details and he will call you by return.
Please be assured discretion and confidentiality will be observed at all times.
For further information on Foulger Underwood please visit www.foulgerunderwood.com
