Retention - What You Need to Know, Reminder New Practice for Sale

Welcome to this week's Market Update. 

Firstly, as a reminder, we have listed three great practices earlier this month:

Bookkeeping Melbourne Inner East 632,000 fees (ID#273)

Accounting and Bookkeeping Melbourne South-East $1,163,000 fees (ID#257)

SMSF Audit Brisbane $302,000 fees (ID#269)

Interestingly, not one of them is a "vanilla" accounting practice. An ongoing trend over recent years is the increasing range of specialty and mutli-disciplinary practices coming to market, which we expect to continue. If either of the two Melbourne practices look like a good fit, don't delay in registering your interest. For the Brisbane SMSF audit practice, this has moved very quickly and the Vendor is already moving to Heads of Agreement discussions after less than a month on market.

A core part of our purpose at DMY is to help educate the market on successful ways to buy and sell practices. We spend a lot of time speaking about this with practice owners either 1:1 or at various industry events. Not surprisingly, many of the questions we are asked follow a similar theme so we have decided to share the most common ones, together with our responses, in these Market Updates over the coming weeks and months.

Our first subject in this new What You Need to Know series is Retention, where we deep dive into all aspects relating to this critical element of any practice sale or purchase including: 

• What is retention? 
• What is its purpose?
• How does retention work in practice?
• How is the percentage determined?
• How long is the retention period?
• What is included in the retention revenue?
• How can Vendors help secure their full retention payout?
• What retentions are we seeing in the market?

You can access the article here: Retention - What You Need To Know. It's a valuable ten minute read for anyone serious about successfully selling or buying.

We have plenty more topics coming up in our What You Need To Know series. Next time round we will be looking at The Changing Role of the Vendor Post Sale. 

See you out there!

Mark and Daniel

mark@dmyassoc.com.au        daniel@dmyassoc.com.au,

Bookkeeping Melbourne Inner East $632,000 in fees (ID#273)

Accounting and Bookeeping Melbourne South-East $1,163,000 in fees (ID#257) 

Queensland

SMSF Audit Brisbane $302,000 in fees (ID#269)

1 Principal firm, Brisbane South $675,000 in fees (ID#217)

1 Principal firm, South East Queensland  $850,000 in fees (ID#157)

1 Principal firm, Regional Queensland $930,000 in fees (ID#236)

1 Principal firm, Townsville Qld $275,000 in fees (ID#213)

South Australia

2 Partner firm, Kangaroo Island SA $410,000 in fees (ID#179)

Victoria

1 Principal firm, Melbourne Inner East $632,000 in fees (ID#273)

2 Partner firm, Melbourne South-East $1,163,000 in fees (ID#257)

1 Principal firm, Regional Victorian City $1,350,000 in fees (ID#192)

Three Partner firm, Gippsland Victoria $1,850,000 in fees (ID#208)

1 Principal firm, Regional Gippsland Victoria $850,000 in fees (ID#110)

Western Australia

2 Partner firm, Perth $835,000 in fees (ID#271)

2 Partner firm, Melbourne Eastern Suburbs $1,000,000 in fees (ID#205)

2 Partner firm, Brisbane Inner Suburbs $2,800,000 in fees (ID#195)

1 Principal firm,  Melbourne Eastern Suburbs $466,000 in fees (ID#223)

New South Wales

1 Principal firm, Sydney $860,000 in fees (ID#129)- sold 07/23

1 Principal firm,  Western Sydney  $750,000 in fees (ID#152) - sold 12/22

2 Partner firm, Sydney CBD ~$950,000 in fees (#SM424) - sold 07/21

2 Partner firm, Regional NSW & Sydney ~$2M in fees (#SM408) - sold 04/21

Bookkeeping practice, Sydney ~$$450,000 in fees (#SM428) - sold 04/21

Sydney South accounting practice ~$398,000 in fees (#SM411) - sold 05/20

ACT

1 Principal firm, ACT ~$870,000 in fees (ID#112)  - sold 10/21

Queensland

1 Principal Audit firm, Brisbane Qld 540,000 in fees (ID#227)

1 Principal Audit firm, Brisbane Qld $400,000 in fees (ID#153) - sold 05/23

1 Principal firm, Brisbane South East $1,055,000 in fees (ID#231) - sold 04/23

1 Principal firm, Brisbane South $204,000 in fees (ID#216) - sold 11/22

1 Principal firm, Gold Coast Qld $530,000 in fees (ID#202) - sold 11/22

1 Principal firm, Brisbane North $1,600,000 in fees (ID#190) - sold 09/22

1 Principal firm, Brisbane South $714,000 in fees (ID#188) - sold 08/22

1 Principal firm, Brisbane North West $263,000 in fees (ID#175) - sold 07/22

1 Principal firm, Queensland Northern Gold Coast ~$730,000 in fees (ID#125) - sold 04/22

1 Principal firm, Gold Coast - Qld ~$900,000 in fees (ID#86) - sold 02/22

1 Principal firm, Queensland North of Sunshine Coast ~$540,000 in fees (ID#126) - sold 12/21

1 Principal firm, Brisbane North ~$1,200,000 in fees (SM407) - sold 08/21

Brisbane accounting practice ~$1,448,000 in fees (SM409) - sold 09/20

Brisbane accounting practice ~$2,133,000 in fees (#SM410) - sold 07/20

South Australia

1 Principal firm, Port Adelaide, SA $425,000 in fees (ID#84) - sold 06/22

1 Principal firm, ~$515,000 in fees (#SM405) - sold 05/21

Victoria

1 Principal firm, Mornington Peninsula $1,000,000 in fees (ID#98) - sold 08/23

1 Principal firm. Melbourne $372,000 in fees (#259) - sold 08/23

1 Principal firm, Melbourne Inner North fees of $1.040,000 in Accounting and $200,000 FP (ID#218) - sold 07/23

1 Principal firm, Melbourne - Inner North $560,000 in fees (ID#243) - sold 07/23

2 Partner firm, Melbourne South $1,200,000 in fees (ID#226) - sold 07/23

1 Principal firm,  Regional Gippsland Victoria $1,300,000 in fees (ID#162) - sold 06/23

1 Principal firm, Melbourne Inner South East $630,000 in fees (ID#57) - sold 05/23

1 Principal firm, Melbourne Inner Suburbs $430,000 in fees (ID#200) - sold 03/23

1 Principal firm. Melbourne East Fees of $448,000 Accounting and $294,000 (ID#209) - sold 02/23

1 Principal firm,  Regional North Victoria  $1,132,000 in fees (ID#199 - sold 01/23

1 Principal firm, South Melbourne $620,000 in fees (ID#204) - sold 11/22

2 Partner firm, Melbourne Inner Suburb $1,500,000 in fees (ID#168) - sold 09/22

1 Principal firm, Regional North East Victoria Fees of $433,000 in Accounting and $62,000 Financial Planning (ID#151) - sold 08/22

1 Principal firm, Melbourne West  ~$700,000 in fees (ID#122) - sold 05/22

1 Principal firm, Melbourne North  ~$300,000 in fees (ID#127) - sold 03/22

1 Principal firm, SE Gippsland ~$430,000 in fees (#SM401) - sold 01/22

1 Principal firm, Melbourne Inner South East ~$555,000 in fees (ID#123) - sold 12/21

1 Principal firm, Melbourne South East ~$1,360,000 in fees (ID#116) - sold 11/21

1 Principal firm, Regional NE Victoria ~$1,000,000 in fees (#SM427) - sold 11/21

1 Principal firm, Geelong region ~$495,000 in fees (ID#117) - sold 10/21

1 Partner firm, Melbourne CBD ~$1,250,000 in fees (ID#96) - sold 09/21

 1 Principal firm, Melbourne South East ~$540,000 in fees (ID#105) - sold 06/21

1 Principal firm, Melbourne Inner North ~$360,000 in fees (ID#413) - sold 06/21

1 Principal FP firm, Mornington (#SM403) - sold 07/20

Melbourne/National bookkeeping practice ~$1,100,000 in fees (#SM404) - sold 06/20

1 Principal firm, Melbourne Inner North ~$800,000 (#SM417) - sold 12/20 

1 Principal firm, Melbourne SE Suburbs ~$636,000 in fees (#SM402) sold 12/20

Email: contact@dmyassoc.com.au
Phone: 03 9448 2308
Web: dmyassoc.com.au

Sydney: 903/50 Clarence St, Sydney NSW 2000 
Melbourne: Level 8, 805/220 Collins St, Melbourne VIC 3000 
Brisbane: 9/204 Alice St, Brisbane QLD 4000
Adelaide: 3/55 Gawler Place, Adelaide SA 5000

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