Pre-planning to maximise succession value
I recently had to tell an accounting practitioner that the value of their equity within the firm was worth less than ten cents in the dollar. Unsavoury of course, but it needn’t be this way. I advised three options that provided a better outcome. Two of these required additional time pre-transaction. This is essential. Taking…
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Our Firm
Our Firm Rob Knights & Co commenced operation almost 40 years ago under the leadership of Rob Knights. Rob studied accounting, qualifying as a Chartered Accountant in 1971, whilst working in a large firm in Melbourne, which later become part of one of the Big 4. His background was predominently in audit. Our services are…
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What is the purpose of your website?
Now, before I proceed too far into this subject matter, I will preface this with, I am not an expert in this area at all. In fact, we are just undertaking the redevelopment of our own website at present (watch this space) and have been guilty of issues I am about to mention also. That…
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Fixed Fees – how do many firms set them & what are the pitfalls to avoid
This would probably be one of the most common topics that I am asked about, and probably one of the most misunderstood. The whole debate around fixed fees versus hourly charge rates. So, this is what we see. When speaking with practitioners that implement fixed fees, I’ll ask how they arrived at setting the fee.…
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What do Current Vendors look like?
What do Current Vendors look like? If research is correct, we are going to experience around 52% of current practitioners, principals, partners, directors, practice owners retiring in the next five years. Furthermore, this number has seemingly increased by over 10% in a year. Such results probably aren’t overly surprising; we have been waiting for this…
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The Importance of Maintaining Your Average Earn Rate
The Importance of Maintaining Your Average Earn Rate Pleasingly we have found the continued rise of earn rates within accounting firms throughout Australia. Not too long along such rates would be $100 per hour, $120 per hour, $150 per hour, however depending on the firm’s location, size, services, types of clients and staff, current values…
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Beware of the Bogus Broker
Beware of the Bogus Broker I recently received a call from a client who had listed their practice for sale with another supposed ‘practice broker’, wanting to discuss their dissatisfaction with the “broker’s” performance thus far and seeking some advice around what realistic market expectations currently where in terms of transaction times, price and the…
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How Can Write Offs be Better Managed?
How Can Write Offs be Better Managed? As part of our recent June Benchmarking Survey, write off averages seemingly suggested an improvement for the 2017 financial year, with ten of the seventeen regions reporting a better result. That said, we continue to see some pretty significant results within a number of firms individually leading us…
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What is Your Practice / Equity Really Worth?
What is Your Practice / Equity Really Worth? In the forty plus years that our firm has been valuing professional practices, we can probably count on one hand the number of times that a practitioner has underestimated the realistic value of their equity. On some occasions, expectations are not too far off the mark, but…
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