With two packed days of insightful speaker sessions, brilliant conversations, catching up with old faces and meeting many new ones, we weren’t short of things to do at Accountex 2023!
With so many people to see, you may have missed our speaking sessions. So if you couldn’t make it, or would like a recap, here’s everything we learned at Accountex London 2023:
How to fund, buy and sell your accounting practice
We kicked off Accountex on Wednesday morning with a full house! The session involved discussion from Paul and Kirsty on the funding market for accounting practices and experiences from Nikki Adams, MD at Ad Valorem, and Peter O'Connell, MD at Shaw Gibbs, who have acquired multiple practices.
Nikki and Peter gave the audience tips on what they look for when acquiring a practice, explaining that they look for firms that have:
- Up-to-date tech and have their clients online
- A good location relative to their current practice
- Strong cashflow projections
- Monthly recurring revenue
- Not reducing their marketing costs
When asked about why both firms opt to acquire practices, rather than grow organically, both agreed that acquisition was the fastest way to accelerate their growth.
Peter also noted that it’s not just the clients that you bring in with an acquisition, but also a team of experienced and skilled staff. In a period where hiring is an increasing challenge in the accounting industry, bringing in other resources like quality staff is a huge benefit.
As the panel discussed how to acquire a firm, Nikki noted that “it depends on your growth aspirations” on whether you should look for funding. She explained that Ad Valorem “wanted to grow faster and therefore needed funding to do that.”
Paul explained how the current economic landscape means that lenders are tightening their restrictions and their rates are increasing, which will have an impact if you’re looking to fund an acquisition. Despite the tightening lender requirements, there is a market for accounting practices looking to fund their acquisition, it’s just a little bit tighter at the minute.
As interest rates rise, a good credit score is important if you’re looking to fund your practice as it will enable you to access the cheaper interest rates available.
If you’d like more insight into funding buying and selling your accounting practice, you can download our complete guide.