JOBTEL Practice Merger Catalyst Ltd Reg no 3404011

Accountancy   Sales, Mergers Acquisitions 

EXTRACTS FROM OUR LATEST NEWSLETTER    GETTING READY FOR A DEAL   Let us help you prepare your practice now so that you can just press the button when the time is right and get the best price!   Remember sooner or later ALL sole practitioners must either Sell, Merge or Close Down. So prepare for the inevitable! Need strategic advice? –Call. Here are our tips as to what to do: 1)   Sort out your own personal future & pension  Have you a pension fund? When will it click in? Have you worked out what to do after sale? Just get out? Retain some clients? Work for the buyer? – we can talk your options through with you well beforehand. 2)   Take a really critical look at your practice as a buyer would see it  Many practitioners drop performance and run a personal  lifestyle practice. They indulge clients by allowing extended credit (ruins W/C control); they don’t invest in IT (systems become out of date); they don’t push staff (so  employ staff who should have gone); they don’t increase charges (so gross margins fall away). Tighten up or the buyer will reduce the price 3)   Get your info ready Detailed Client List, Systems description Crown Jewels analysis What’s that??? see over

 

Winter 2010/11 Newsletter No S15

 

SHOW OF THE CROWN JEWELS

Buyers these days are getting much more sophisticated – gone are the days when the seller gives out a £150K fee client list and says “OK at £1.1?” “Then let’s do it!”  They want to know much more about margins and about what’s in the client list.  Some buyers regularly use codes like Gold, Silver, Lead, to denote attractiveness of the client.  You can prepare for this by analysing your top 10 -20 clients in more detail indicating future potential for fee growth!..... And how many star clients with excellent potential have you got hidden away as little fees?.. SHOW THEM

CONSOLIDATORS – If you wish to discuss the creation of a consolidator at National, Regional or Local level please call us to discuss…Jobtel completed its retainer period with Vantis in May 2007 and we can again take the leading role in promoting a new Consolidator. Jobtel thinks that as soon as the recession is over there will be at least TWO more consolidators anxious to crystalise their goodwill – cash in their hard earned chips – and why not!!! Call to discuss

Jobtel do Seminars  - The demand for seminars on practice M & A seems to go in waves so in the early 2000s we did 20 or so up and down the country. If you need advice  1) call us 2) buy the book or 3) call your own Institute, Town Group, District Society or Regional operation, (depending on whether you are ICAEW or ACCA) and suggest that Jobtel are invited to give a 90 minute seminar to a group.  Jobtel normally do this free of charge except for travelling expenses of, say, £50 or £60.  The benefit of a session like this is that you are able to ask any questions that might be worrying you!

We also carry out valuations of practices for a standard fee of £750.  We carry out a wide range of valuations; death or divorce of a practitioner, practice splits, potential partner buy-in, transfer to Ltd Cos as well as firms just wanting to know how they stand and what they can do to improve their valuation.  This involves a visit to the practice and Jobtel usually prepare a valuation on two bases and perhaps a third one for larger practices.  These are 1)  on GRF/turnover  2) based on profitability X number of years earnings and 3) based on the present value of a stream of income.  If we can help you in your valuation, please do not hesitate to call us.

Jobtel’s new hourly paid M & A consultancy service Several firms have now taken advantage of this service and we will assist you in any part of the M & A procedure (except DD) Jobtel will work for you on an hourly consultancy basis only e.g where you have already located a buyer and don’t need the all inclusive service. We ask for a deposit of £400 plus VAT, which entitles you to 4 hours of our time.  This might be a phone call from you, a fax or an e-mail on any matters coming within Jobtel’s expertise.  We aim to reply within 48 hours.  You may ask us to represent you at meetings, (in which case our rates are doubled), or  remain undisclosed. So why not take advantage of this offer?  Jobtel has done probably many more deals than you!  So why not use our skills selectively?

JOBTEL RE-WRITES THE BOOKS (out Jan ’09)   Jobtel are revising their series of books. These contain the sum total of our wealth of knowledge of the deal process.  We prepared the chapters initially in response to queries but we got fed up of spending hours on the phone explaining we thought we’d write it out in full   Seller’s Pack    214 pages 40% discount = £132 inc p&p Buyer’s Pack   187 pages 40% discount  = £156 inc p&p Merger’s Pack  184 pages 40% discount = £129 inc p&p Valuation Pack  179 pages 40% discount = £69 inc p&p   Maybe you want to do your own practice M&A?  Maybe you feel you don’t need a broker?  These are available for you, as our special contacts, at the discounted rates shown above. (no vat – send chque)

DIRECTOR Julian E Hamilton FCA MBA BA

Julian Hamilton is in the office most days until 7.00pm, so call him directly for a confidential chat he is always ready to offer help and advice.   WE HAVE MOVED AGAIN!!!! We hoped to move into a “purpose built office” alongside our former home, then due to builders delays we had to move out into temporary accommodation the last of which was too large and costly to run. So we moved again – hopefully for the last time!!!!   Jobtel, Minster Chambers, Minster Centre, Southwell, Notts. NG25 OHD Phone :  00 44 (0) 1636 812960    Fax:  00 44 (0) 1636 816211 Email. enquiries@jobtelmanda.co.uk – sometimes this appears difficult to get if so use jobtel@btconnect.com   See the Web which we update regularly Web.. www.jobtelmanda.co.uk

TIPS FOR A BUYER (2)   You can prepare for an acquisition in several simple ways.   1.   Try to work out the average fee you charge your clients and the sort of firm that you want to acquire.  Don’t just run at any firm that’s available.  Compare charge out rates! 2. Don’t get hung up on payingCapital sums based on GRF – valuations are moving away from that towards one based on a profit multiple. Don’t imagine that by taking on low margin work you can necessarily  change profits quickly. It’s difficult to change the basic business format. 3. Watch out for the TUPE rules tightened in 2006 even temporary or sub contract staff can in certain cases be taken as full time staff to whom you must offer like for like employment.

IF YOU WANT TO BE TAKEN OFF OUR DATABASE

J.E. Hamilton FCA, MBA - Director

 – then just fax back the front sheet saying “STRIKE OFF”