SOLD
Accounting and Financial Planning
Multidisciplary Firm - South West Brisbane

This well-established multidisciplinary firm, located 40–45 km southwest of Brisbane’s CBD, achieved significant growth in one of Queensland’s fastest-growing communities. For FY 2023, the firm anticipated accounting fees of $3.3 million and financial planning revenue of $420,000. It offered comprehensive services, including tax and business services, audit, and financial planning, primarily to clients based locally, in surrounding regions, and throughout Southeast Queensland.

Business Overview:

• Revenue Composition: Approximately 73% of annual revenue was derived from tax return lodgements, totaling around 2,300 in tax year 2022. These included 1,526 individual returns, 56 partnerships, 226 trusts, 190 companies, 69 super funds, and 238 quarterly BAS. Statutory and SMSF audits accounted for 6.4% of fees during the same period.
• Client Base: In FY 2022, 496 accounting client groups were serviced, with an average annual fee of $6,510. Notably, 44.5% of annual fees exceeded $20,000, and an additional 29.5% fell within the $5,000–$20,000 range.
• Financial Planning Division: Serviced 131 client groups, with 60% of revenue from annual fees ranging between $3,000 and $20,000. Two substantial clients collectively contributed 15% of fees. Services were primarily fee-for-service, based on a percentage of Funds Under Management (FUM), focusing on investment-based revenue streams.

Client Demographics:

• Accounting Clients: The top 20 accounting client groups contributed approximately 34% of annual fees, with the largest client accounting for around 4.5% of revenue. The average age of primary contacts was 57, ranging from mid-thirties to mid-seventies.
• Financial Planning Clients: The top 20 financial planning client groups contributed about 49% of FY 2022 revenue, averaging annual fees of $9,400. These groups represented 46% of overall FUM, averaging just under $1.3 million per group. The largest client accounted for 8.3% of annual fees and 13% of FUM. The average age of primary contacts was 68, ranging from mid-fifties to early eighties.

Operations and Infrastructure:

• Staffing: The firm’s partners were supported by a team of qualified professionals and administrative personnel.
• Technology: Over recent years, the firm modernised its technology, transitioning towards cloud-based software solutions.
• Premises: Owned by a related party, the premises offered excess capacity, beneficial for purchasers seeking a secondary location.

Transition Plan:

The practitioners aimed to reduce working hours and transition to semi-retirement. Two equity holders intended to move immediately to part-time roles, while the remaining two were available full-time for 1–2 years before reducing their involvement.