How a business owner transitioned his legacy
Graham Gunn, Former Owner of Gunn & Co
Article by: Chris Sheedy OF The Hard Word
In practice since July, 1976, Graham Gunn had one simple wish as he put his business onto the market – that his clients were well cared for. After all, they’d been a part of his life for quite a while...
After decades in practice the thought of stepping away, of relinquishing control, can be daunting. But for Graham Gunn, having been at the helm of Sydney-based Gunn & Co. for 48 years, there was great comfort around the idea of passing management responsibility on to a new owner.
What he desired was assurance that his clients would be well looked after, and that the transition would be a smooth one.
The sale was managed by Kev Ryan of accounting firm transaction advisory KevRyan, who worked closely with Graham and the acquiring firm to ensure those wishes were met.
“When I first got in contact with Kev, I was 78 years old,” Graham says.
“My health was quite good, but I realised that if anything happened to me as a sole practitioner, whilst I had good staff behind me, I’d be leaving my clients and staff in a bit of a mess. And I’ve looked after them for too long to let that happen.”
“I had a feel for the clients. I was looking for somebody that would also have that feel, someone who wouldn’t alienate them in any way.”
“When it comes to such long-established firms, it’s critical to ensure the acquirer fully appreciates the relationships forged between the vendor and their clients over the decades” Kev says.
“It’s not just the obvious bonds that are formed, the friendships, the generational interactions etc., but the intimate knowledge of the clients’ affairs. Cultural fit is probably more important with these types of transactions then others.”
That’s why the deal requires an acquirer “with a bit of grey hair themselves,” Kev says.
“Old-school practitioners provide old-school advice and service. You can’t come in and enforce Zoom calls for every meeting from day one. You can’t be in a rush. You need to transition slowly and purposely, with care.”
And so began the search for not just any buyer, but the right buyer.
It’s business – it’s personal
Barry McGee, CEO of People+Partners, has been deeply involved with mergers and acquisitions for several decades.
His firm was looking to expand into western Sydney, where Gunn & Co. was located.
“I’ve known Kev for over a decade and we have communicated regularly about transactions and acquisition opportunities,” Barry says. “I discussed with Kev our plans for something in Western Sydney, and he came to me with Graham’s business. He said it might suit us, and we took it from there.”
Looking to develop a hub-and-spoke model of business with local people creating a local presence in local offices, People+Partners see great opportunity in their staff being members of their communities.
What creates business success, as well as merger and acquisition success, Barry says, is people. So, while location was important, the people were essential.
“Culture is everything,” he says. “If you don’t align with the people in the business you’re acquiring, and with its clients, it simply won’t work.”
“Graham had built relationships with his clients over decades. If we didn’t approach the transition properly, we risked damaging those relationships.”
The consultant’s value
For the seller who Kev represents, and for the buyer who relies so heavily on Kev’s experience and advice, the role of the transaction advisor is crucial. This is particularly true in terms of making a cultural match between organisations.
“Kev had to get an appreciation of what I was looking for and scout around for buyers who fit that profile,” Graham says. “He had to weed out those who wouldn’t be a good fit.”
“Buyers are not created equally,” Kev says. “Not everyone has the experience and or the resources, including time and patience.”
Certain gold nuggets in well-established accounting firms aren’t just lying on the ground. “You have to dig for them,” Kev explains. “Most times, that’s with the vendor’s support, showing where to put the shovel into the ground.”
“I knew Barry had the experience, the nature and resources to take this one on.”
For Barry, the fact that Kev was involved in the process meant he saved valuable time.
“I don’t want to waste my time meeting people when there’s no possibility of a solution,” Barry says. “Kev’s role is to assess that upfront. He knows what the seller wants and whether it aligns with us. If it’s not a fit, we move on quickly.”
Trust and communication
Barry and Graham, when they met, realised they both had a strong belief in the value of trust, communication and a shared vision. In a business transaction, due diligence is vital and the numbers have to add up, but that means nothing without the essential human ingredients.
“The secret sauce is around people and trust,” Barry says. “You have to align the outcomes for all stakeholders.”
“If it’s only about the buyer, about what they want at the expense of all others, it simply won’t work. Similarly, if it’s all about the seller’s wishes, it also won’t work. There has to be a willingness to meet in the middle.”
Graham agrees. “Selling an accounting business is far more personal than just buying a car,” he says.
“You’re handing over relationships that you’ve built for decades. That’s why having the right advisor, someone who understands that, makes all the difference.”
When the deal was done, it was agreed to keep the Gunn & Co company name for 12 months, and to communicate openly and regularly with that business’s clients about the upcoming transition to People+Partners.
Graham would also stay on for two days each week, not because he had to, but because it suited his lifestyle and it gave his clients a continued connection.
“My wife was doing something on both of those days,” Graham says. “I’ve got a group of clients who I visit each quarter, and I like to use this time to introduce them to the new team, to Barry’s staff.”
For accounting practice owners considering their future, Graham and Barry’s journey offers powerful insights – plan ahead, focus on cultural fit, and don’t enter into a discussion unless there is a deep level of trust and respect.
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