We Invest in Established Accountancy Practices
Giving SSAS Pensions and Sophisticated Investors the Opportunity to Invest in a Growing Group of Established Accountancy Practices for a Consistent Return.
We Acquire Established Accountants with potential for considerable Growth
Over the next 3 years will intend to acquire over 50 profitable and established Accountants with untapped potential for further growth of both profits and value.
Our target market are Accountants with a turnover of £500k-£5m, that have an experienced leadership team in situ and are ripe for growth. We then intend to invest in and support the leadership team and staff to enhance their ability to improve and expand the services offered
With most Accountants we will acquire, will create an increase in profits by 100% within 6 months and 200% by 12 and 1,500% within 3 years
There are around 43,250 Accountants in the UK and we want to acquire 50 over 3 years. Thats less than 0.01% of the market.
We aim to acquire each Accountant at 1- 1.5x EBITDA; the current fair price for individual Accountancy practice.
Once we have acquired the business, we intend to improve the service offered by the Accountants, enhance its local reputation, its profitability and value.
Once we have over 20 Accountants in the Group, the value of each business should rise from 1-1.5x EBITDA to 7-8x EBITDA. That’s potentially a 700% increase on the original multiple. The reason for this is simple. Large companies, Pension Funds and Private Equity businesses love buying A group of businesses when they reach this size and they are willing to pay high multiples for them.
We also aim to enhance the profits of each of the Accountants we acquire by expanding them from simply focusing on compliance and adding on an advisory service. Adding a robust Advisory and referral system to ensure our clients grow their businesses should 10x the profits within 2 years. Theses two elements should enhance the value of the Group 7000% at least.
Whilst the previous owners would have poured their lives into their businesses for 10 years plus they are typically only at best 10% as profitable as they should be. We will achieve this by expanding their service from simply compliance focused to be advisory focused.
By focusing on investing in and supporting the leadership team, the staff, moving each practice from compliance to advisory ; the growth of the profits is almost inevitable. Our target increase in profits within 24 months per business is over 1000%.
Finally, we intend to exit by selling our Accountancy Group of stable and profitable businesses through either an IPO or acquisition at potentially 7-8x EBITDA. We aim to acquire 50 independent Accountants over 36 months giving us a Group worth over £100m.
As an investor you could benefit from this growth
The Accountancy sector is hugely fragmented with over 43,000 separate businesses. The vast majority are owned by their founders and over 10% of these will be retiring within 3 years.
Most Accountants, whilst cherished and well run, have plenty of scope to improve and grow.
Why is the Accountancy sector an excellent investment?;
We will only acquire Accountants with;
All our Accountants are Well Managed and Supported by our Leadership Team
We intend to acquire Accountants with their existing leadership teams to ensure they continue to operate the basics smoothly and to serve their loyal clients. Our Operational Leader is an experienced Chartered Accountant and has been a Partner for over a decade. She is the ideal leader to support our leadership team to maximise their potential.
Whilst the previous owners are often dedicated to their business, as the fresh new owner we are able to invest in the Accountants to ensure.
Our ownership should be like a breath of fresh air into the business.
We are dedicated to supporting the leadership team and staff of Accountancy practice and pledge that our people will love working with us to enhance the clients experience and profitability
We intent to only acquire profitable Accountants with untapped potential for further growth and improvement.
Our target businesses have a turnover in excess of £500k-£5m and who have rock solid management in situ. We bring along a huge amount of support for the leadership team and staff to enhance their ability to improve the experience and service level offered to their clients.
Most of the Accountants we will acquire are likely to experience an increase in profits over 100% within 6 months and 200% with 12.
The Accountancy sector as a whole is growing because the number of businesses is growing. The demand for accountants is increasing and that should ensure long term profitability even without our strategy of introducing an Advisory Serviceonly
Once we have over 20 Accountants in the Group, the value of each business should rise from 1-1.5x EBITDA to 7-8x EBITDA. That’s potentially a 700% increase on the original multiple.
If we also increase profits x10 over the first couple of years, the growth of value should exceed 7000%
Investing in established businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. UK investor Hub is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You may only invest via UK Investor Hub once you are registered as sufficiently sophisticated. Click here to read our full Risk Warning.
If you do not meet these criteria, you must NOT take any further action and leave this site.
These investments are not covered by the Financial Services Compensation Scheme (FSCS) and clients will not have access to the Financial Ombudsman Service (FOS). All investors should seek independent professional advice before deciding to invest. Please read our full risk warning before deciding to invest.
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