EXPRESSIONS OF INTEREST - VENDOR IS NEGOTIABLE
An opportunity to acquire a large scale, diversified and multi-regional accounting & tax practice group. The Vendor would like to sell in the short to medium term, and is realistic as to price expectations. The type of services provided mostly comprise individual tax returns, plus there are also smaller business tax returns – which when combined totals approximately 11,000 tax returns lodged per annum. The business group currently operates via 3 separate entities, 2 of which are under a well known and respected franchise arrangement. These operate in 2 large and protected franchised territories in Western Australia. The Vendor would like to sell in the short to medium term so is negotiable on the price. Total fees are circa $2,300,000 with approximately 85% relating to individual ITRs. If necessary the Vendor will also look at splitting up the territories.
The first franchised territory generally comprises country/regional areas to the South West of Perth. There are currently 5 offices located in various larger country towns, and also 1 in the city of Mandurah.
The second franchised territory generally comprises the suburbs north of the Perth CBD. There are current 5 offices located in various Perth suburbs.
The third entity operates an accounting practice from an office in Mandurah, and is a traditional accounting practice undertaking tax, accounting and compliance work mostly for businesses.
There are two staff members who are involved in coordinating and managing the operational matters for both franchised entities and the accounting practice. For this reason, the Vendor advises he does not spend significant time actively managing the employees, although he does visit the various locations and oversees the key staff as needed. All other staff members are employed in the respective entity for which they undertake the work. Each of the offices have the necessary number of staff needed to operate the business, which includes full time, part time and causal people. Most of these staff are considered to be multiskilled in that they can undertake the preparation of income tax returns, reception and administration duties as needed.
Due to the number of locations, there is significant computers, furniture, plant & equipment and software needed to operate the business group. This is included in the business package being offered.
Being involved with this well-known Franchise provides many benefits to the business. This includes access to:
• A recognised brand name, which helps “position” the business
• Training materials
• Marketing materials, plus a dedicated marketing person
• A dedicated business development consultant
• Technical support
• Other franchisees, who are happy to share information (due to the territories)
• Suggested methods of business development
• Policy and procedure manual
• Quality control techniques
• Buying group benefits
• Other services, if desired
Broadly these items, together with the existing staff infrastructure, enable the Purchaser to free themselves up to focus on developing and growing the business further, rather than be focusing on the actual preparation of income tax returns on a day to day basis. The Vendor’s involvement with clients has been reduced as he has chosen to employ staff, so that he has flexibility and has been able to undertake personal activities. The Purchaser may perhaps decide to operate the business differently by becoming more involved on a day to day basis.
There could be possibilities to expand the business group by growth of fees from the existing offices or perhaps opening up additional offices in the existing franchise territories. A more aggressive marketing campaign could also be adopted (perhaps with the assistance of the Franchisor). In addition, there could be an opportunity to focus on actively promoting and providing additional services including financial planning, insurance and loan finance services should the buyer have the necessary knowledge, capacity and licences.
In summary, this is a rare opportunity to acquire a large and well-established accounting & tax practice group. It has thousands of clients located throughout the state of Western Australia. It could be ideal for a progressive and experienced accountant wishing to develop a large financial group, or perhaps an existing accounting practice wishing to diversify, or perhaps other buyers who have a strategic plan for growth in the financial sector and wishing to have direct access and control over a large client base.
We have an Information Memorandum available which interested parties can have access to after signing a confidentiality agreement. For further information contact the Zircom Office or submit enquiry form.