One of the benefits of having a tech team working alongside our brokering unit is the ability to draw data from our M&A platform to identify trends. Weâ€™ve been developing data prospecting tools to help us build a Buyer Index for the accounting industry.
It helps us identify and highlight the areas of greatest demand by fee type and geography.
We start by measuring levels of enquiry on listings, then dig deeper to consider the quantity and quality of bids with respect to buyer qualification criteria and vendor terms and goals.
It lets us consider not only the amount of attention an opportunity gets when it is first listed, but also the persistence and competitiveness shown by the buyers in chasing down the opportunity.
So, what have we learned so far?
Topping the list with respect to all of these factors is Business Services / Tax fees in the Sydney Inner-City area. It not only shows the highest level of enquiry per listing, but also indicates more than 80% of qualifying buyers going on to submit credible bids.
What surprised us the most was the universal appeal of SMSF fees in comparison to other fee bases.
We’ve run a series of transactions involving these fees recently and found both a robust audience and healthy appetite.
Furthermore, the interest in SMSF fees was not limited to the Sydney Inner City – it looks like a good time to offer SMSF fees regardless of your location.
We’re also noticing a uptick in purchase enquiries from financial planners after a quiet second half in the 2019 calendar year. Most of these enquirers are existing practices looking to increase turnover to maintain or grow profits.
If you’d like to discuss your circumstances you should get in touch with Mark Witt at Practice Exchange