By John Peterson
We’re still following up one on one with many of your recent inquiries so please be patient if you haven’t heard from us yet.
ENCOURAGING NEWS FOR SMALLER FIRMS
I’m delighted to be able to confirm that one of our national buyers (a major consolidation player) has just provided some factual data regarding their locations of interest and practice parameters which will no doubt be encouraging to so many of you running firms turning over less than $1M in annual fee income.
HERE’S WHAT THE BUYER SAID SPECIFICALLY
“We have no geographical constraints and one area we are very active in is the Canberra / The ACT”
SO WHAT ARE THE LOCATIONS?
“We are interested in both metropolitan and regional areas, in the end, if the numbers stack up we will pursue the opportunity”
WHAT FINANCIAL PARAMETERS INTEREST THEM?
“To give you a guideline, outlined below are our financial parameters”
Stand Alone new Firm
Category A -City suburban with revenue of >$500K
Category B -Major Regional Towns with Revenues of >$450K
Category C -Country area revenue of minimum $400K
Stand-alone needs to have a minimum 30% of EBITAPR (=EBIT after principal remuneration)
Category D -Revenue $300-$400
Category E -Revenue $200-$300K