Where next for accountancy practice valuations?
Increasing numbers of accountants are throwing in the towel due to the combination of increased red tape and uncertainty over client survival through the recession, but sellers are taking longer to make up their mind and sign the dotted line. “So what’s holding them back ?”, asks Isaac Ginsbury, manager at Kensington, a leading UK accountancy practice broker. It seems that they worry about what to do with the sale proceeds – “it’s hardly worth putting on deposit and other investment opportunities for risk averse beancounters are somewhat scarce” says Norman Younger, founder and director of Kensington. Some are staying on for a few years as they cannot afford to retire but want to bank a lump sum now and ensure that clawbacks are minimised, but those with adequate pension or other business interests are taking the money and running. Isaac reminds us that as with everything you get what you pay for, so a low multiple, a quick sale and a short clawback means the buyers will have their wor
