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