We are delighted to kick off our first Market Update for March with another new accounting practice coming to market:
- A Melbourne suburban practice with $535,000 fees, a stable and diverse client base, and high profitability.
We are anticipating strong interest for this practice so if you are an interested buyer make sure you register your interest via our website listing. Check out the details below.
Meanwhile, we had an interesting question from a potential seller this week which we were keen to share, together with our response. It was a good question because it reminded us that you can never assume people are thinking about your business in the same way that you do.
Question: I noticed in your last email that you have a lot of practices for sale, are you coping okay with the additional listings as it seems like a lot to juggle.
We actually don't feel that we have that many practices for sale at the moment. While we listed five new ones in February, we have been very successful in closing deals (delivering results for our clients) in the last 3-4 months to create capacity to take on new ones.
Moreover, like many owners of fast-growing accounting practices, we have invested a significant amount of time in making our processes efficient and scalable, including hiring great people, and leveraging automation at key points of the enquiry and deal management process. As such our team comfortably have the capacity to handle more practices that we have on the market right now without impacting our ability to deliver clients both a great outcome and a great experience,
In summary, if you are ready to move forward in 2022 with a sale of your practice, it is a very good time from a market perspective and DMY are ready and able to help you get the right outcome.
On a final note, I (Mark) really enjoyed spending a few days in Sydney last week meeting with practice owners all across town. A common topic of conversation was the state of the market for selling practices. Sydney is an unusual market in that there have been very few listings anywhere, us included, in the last 6-9 months. Listening to the practice owners, it's clear that COVID disruption has been a key driver of this, but now people are starting to get on top of things. We do expect more supply of firms for sale in 2022 but there is still an overwhelmingly greater number of buyers (we saw an average of 76 buyers per metro sales listing in 2021) so we don't see prices dropping, particularly for high quality firms. Stay tuned!
Unfortunately, Daniel's trip to Queensland was delayed two weeks because of the flooding but if you are in Brisbane or the Gold Coast and would like to understand the current state of the market and your options, get in touch as he would love to meet up for a coffee later this month. Daniel will also be in Adelaide next week meeting practice owners so, again, reach out if you would like a face-to-face briefing on the market and what it means for you.
Daniel and Mark