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Why now is a good time to buy an accountancy practice

Accountancy practices, when well run, and often when not so well run, are good investments and have always been so. In past years it was always a good investment for those already in the profession and seeking to increase their footprint and income.

Nothing unusual in that then, as is the case with most professions.

Attempts were made at consolidation and trading shares on a public listing, ostensibly to allow investors to get in on the act, though one suspects the business model was engineered to enrich its promoters, given that they tended to crash and burn. 

These days it is private external investors who seek to get in on the act, whether to make money on the practice per se or as a gateway to upsell and / or cross-sell linked financial products such as wealth management or pensions.

The staid and boring domain of the beancounter is now much sought after. I wonder what Mr Cleese would have to say about that. Unimaginable back in the day when originally broadcast but we live in topsy turvy times.

With the arrival of Covid 19 , “the virus”, has come a wall of government money to prop up society which has meant that accountants are working their socks off right now. Subcontractors in the building trades are scrambling for their rebates, self employed people are keen to ensure they eligibility criteria for grants and PAYE is running amok with on the furlough front.

The profession has perhaps never had it so good.

Even self-employed clients who go out of business will be back in there once it is all over. They don’t curl up on the sofa to the sound of daytime telly.

So back to the question.

Just in case you’ve forgotten already, we are asking if “now” is a good time to purchase a block of accountancy fees or indeed a whole practice.

The answer, as ever, is YES, but with a wider level of participation it has become more compelling for those who already have "skin in the game" and know the ins and outs.  As the saying goes , "follow the smart money" especially as the wall of cash has not budged the multiples needle very much so it is not as if you could be overpaying or buying into a bubble.

Given that accountants have a reputation for being risk averse what better recommendation is there than that?

Just make sure you are buying a quality practice and don't skimp on the due diligence.

Absolutely NOT!

 

 

About the author Norman

I’m Norman Younger BA(Hons) FCCA MCIArb and on this blog I’m going to share over 20 years of professional and business experience at the sharp end of small business in the UK, one of the world’s most enterprising nations. As a professionally qualified accountant I have experience advising start up micro enterprises and multi million pound turnover firms. During this time I have owned several business and gained valuable insight into all aspects of the day to day operations covering everything from staffing to marketing. I established and am currently a working trustee of a charity that helps people find sustainable employment and supports entrepreneurs in getting their feet on the business ladder and climbing higher.

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