Jobtel became aware that there are many “local deals” going through all the time – where two parties are already introduced to one another and are ready to discuss making a deal…. introduced perhaps 1) by meeting at Institute events locally or 2) by passing clients commercially (perhaps for Audit or IFA related work) or competitively (when clients perhaps outgrow a smaller firm’s capabilities) between firms or 3) by employees leaving one firm and joining another locally or 4) by one firm having a higher profile through advertising or PR or 5) through business acquaintances such as Bankers or Insurance Brokers, Solicitors or the like…

However achieved, the two parties may meet but lack a clear pathway about how to do a deal and what constitutes a “normal” agreement for the parties concerned. Also there may be some uncertainty as to how to define GRF or to define a valuation basis. (see also separate “Valuations” segment)

During 2005 Jobtel decided that, after being appealed to by many potential clients, it would be prepared to offer an advisory service separate from the full commission related success-related-service for a fee based on hours or days worked.

Jobtel will undertake any agreed M & A tasks subject to our being capable of doing them. (For example we do not give advice on Taxation, CTG, Pensions or Investment Business and are excluded by our PI Insurance cover from taking responsibility for Due Diligence work – though we can advise on the sort of questions that might be useful to ask)

First we agree with the client a Terms of Reference these might for example be

1. Assisting a Manager with the negotiations for acquisitions the Sole Practitioner where he is an employee.
2. Assisting in the sale of a practice where the buyer is clearly identified already.

Next we need to know something about you and the “other party” and may ask you to complete questionnaires to give us background information. Then we agree charge out rates and travel costs.

Our charge our rates are £50 per hour when working from our office or £70 per hour working in your offices and £100 if fronting out or attending meetings alongside with third parties for you acting as your advisor.

Generally we come to an arrangement about the travelling costs to get to see you or third parties - usually accepting a half rate or even less and sometimes simply motor expenses and accommodation costs.

For a “normal” transaction we will operate in any number of ways best suited to your needs – we have to identify your expectations of us… these might be

a) You could simply use Jobtel as a back up & advisory asking us the questions by phone fax or email. Generally we will agree to respond with two days or so (unless we are on vacation) and will tell you the length of time it took to prepare the response. If they are large tasks we will tell you before we start the job the estimated hours that it will take and then we keep to that time.

b) You could write more formally giving us an agreement or other material like a client list and ask for our comments, perhaps asking for a list of key items to focus on in that particular case. In this case we may well be asked to prepare a written report and commentary. Again wherever possible we will try to advise you in advance so that you know the amount of time being taken by us.

c) You might ask us to front out a meeting with the other party where it requires some detailed negotiations (usually of course subject to an overall brief or agreed position). We will assess the likely time to prepare the position paper and attend the meetings and write a concluding report

d) You might ask us to express an opinion as to the valuation (at a distance) of the other party and to suggest an initial approach offer – we would try to estimate the likely hours it would take and arrive at a costing.

e) Sometimes we are simply “in reserve” in effect on a retainer pending possible future events.

We have a full range of books on each major topic and you can buy individual chapters at specially discounted rates of 40% off the listed price – this could well assist you to understand the “wider” picture.

SO HOW DO WE WORK?

We have learned from past experience that individuals, partners and sole practitioners are quite happy to call and ask for advice – generally the information we are given is threadbare at best “I am selling to Mr Fred what do I do?” – So we decided that we had to formalise the advice through this consultancy. We ask for a down-payment of £250 plus VAT (for which a sales invoice is given) before any work starts.

You then draw down the hours in accordance with your requirements and we will tell you regularly your “in hand position”.

When you have come to the end of the initial amount it is entirely up to you as to whether you wish to take up another similar payment and continue the service or simply walk away.

Your exposure is limited to the amount that you have paid Jobtel

We will try to assist you with whatever Accountancy Practice M & A deal you are contemplating.

If you have a problem then call us and we will try to work out with you how we can help

Although almost all our consultancy work relates to M & A activities we are also prepared to consider GENERAL CONSULTANCY - for example we reviewed causes of the low performance of a £1M firm in the North and were able to offer some 20 or so recommendations to raise profitability. If you need this type of assistance ASK. We will tell you what we will do and how much it will cost.