Leading Accountancy Brokers Announce Increase In Accountancy Practices For Sale
Added: (Fri Oct 15 2010)
Pressbox (Press Release) -
Leading accountancy practice mergers and acquisitions brokers; APMA have revealed that they have recently experienced an upsurge in the number of accountancy practices for sale. This unlocks many opportunities for newly qualified accountants or those in the market to acquire fees.
For the past thirty years the sale and purchase of accountancy practices has been a sellers market. In past years it has been the case that, for every £1.00 of fee income which comes onto the market, there are 8 ready, willing and able buyers, but 4 times that number will initially respond to an opportunity. The recent disclosure from APMA certainly hints that things may be changing.
APMA said, “We normally experience two main upturns in the market over the space of a year. The first tends to be between February to June and the second is from September to November. It is during these periods that we have the most vendors approach us to handle the sale of their accountancy practices or fees. APMA has observed these trends over a thirty-five year period. Figures from the current year have indicated that the market seems to be changing. There seems to have been no drop in the rate of vendors during the summer month as we have come to expect. In fact, July and August have been busier than ever as we continue to take on new vendors.”
When asked what they thought were the contributing factors to the increase, APMA responded, “We can only speculate on the cause of the upsurge in accountancy practices for sale. One theory is that recent events, nationally and globally, the recession, the economy and the general election have caused accountancy practice owners to re-evaluate their businesses and plans for the future. In this period of reflection, many may decide that they would simply like to spend more time at home or pursuing other interests. Sadly, others may have tougher financial decisions to make after losing a significant amount of money due to a bad investment.”
The phenomenon that APMA have observed is certainly good news for accountants who are newly qualified or about to qualify. There are many start-up accountants who moonlight from their day jobs, with a small portfolio of their own clients which they service in their spare time. If the market becomes a little more buoyant, it may be a lot easier for them to make the transition into full time self employment.