It was an exhausting week. A fair amount of my time was taken up on due diligence of a small fee bank that I intend to buy.
It has been one big learning curve and an emotional roller coaster. In such a short period, I learned the ins and outs of purchasing a fee bank. It is not so straight forward. There is a lot of work involved to make sure you have the right deal, and the client base fits your practice.
The fee bank is a near perfect fit. 95% clients are on Xero. Also, all clients are on TaxCalc. Furthermore, only two clients are not on Direct Debits.
The buyer and seller are also a good fit for each other. Last weekend, I took a 3-hour journey to meet the sellers (husband and wife). After I had met them, all the due diligence was backed up by my gut judgment – go ahead with the purchase.
The contract is ready to be signed on 31 October 2016. Both parties have read and agreed to the final version. I do not think either side will drop out. Too much work has gone into this. However, you never know with emotional, unpredictable and irrational human beings. Anything can happen for the deal not to go ahead. Until the contract the signed, you know the chickens’ saying- not counting my clients before that contract is signed.
As you know, buying a fee bank results in instant growth. At the same time, it is NOT without its headaches. There is an immediate increase in the workload that the buyer needs to be well aware of and also be prepared. There is also getting to know the clients quickly before they jump ship. It is a small fee bank, so copable.
As stressful and exhausting due diligence was, I loved the whole process of coming to an agreement that both parties thought – yup, the deal is acceptable.
Furthermore, with the amount of time I invested in due diligence, I would consider it an acceptable risk.
I am pleased that Q is back from her four weeks leave. She is very busy catching up with the backlog.
B was working on XPM. We are nearly there now with it being our practice engine. We intend to go live with XPM by the end of next week!
I am looking forward to the Chrismas break. I want a few days off work. Normally, I do not like the season of hypocrites.