Is this the year to buy, sell or merge?
Each February, Australia Day sees the summer break come to an end and with school recommencing, Accountants that have been considering the year ahead start calling my office. It is by far my busiest month with enquiry levels reaching their peak.
My office helps people buy, sell and merge Accounting Firms and this month I except to hear from potential clients across each category.
My buyers are usually the most enthusiastic. These accountants have been sitting at the beach and thinking of all the exciting opportunities that come with scale and proclaim, “I’m going to acquire more fees!”
Growth by acquisition is nothing new, but what we saw last year was an emphasis on ‘talent grab’. I was always a little wary of this, but in the current labour market, which does seem to be finally swing back in the right diction, I find it hard to argue with this being in the top reasons for why someone would consider and acquisition.
The second group are those that were not in a position to enjoy an extended holiday from Christmas through January. These accountants have returned to the desk early and call me to announce, “Kev, I can’t face this for another year — get me out of here!” These are my sellers.
Such is our reach amongst the real and active buyers, we can achieve an exit for these somewhat tired and stressed accountants in a timely manner. Now I would never rush a deal, but am confident that mid-year settlements are achievable with Sellers definitely out buy Christmas.
The third type of enquirer seek a merger. Over the holiday break, this group of accountants have had time to contemplate their journey ahead and have decided that going it alone is no longer appealing. My merger clients are usually either mid-career and looking to team up with like-minded people to share the load, or older practitioners looking to secure an easier run to the finish line – we created the Merger to Retire program for these.
Merging for growth and to seize opportunities has become more and more appealing for younger firms, with focus on work life balance but also to avoid ‘burnout’. I love seeing clients re enthused for the work when the merger has taken away all the ‘noise of business ownership’.
I predict a flurry of savvy accountants merging in the years to come in order to tackle the emerging tech opportunities, specifically to share the cost of investment.
I enjoy working with accountants who are buying, selling or merging and for well over a decade have been successfully producing sustainable outcomes for clients across all three transaction types.
If you’ve come to the start of 2024 and think this is your year for a transaction, I’d be delighted to hear from you too, if only to talk through your options.
Kev Ryan
1300 48 11 52
kev@kevryan.com
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