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The Broker

Q6: MJ- Wales - "I own a mainly SA practice with a T/O of £850,000. My assistant who has worked for me for 5 years wishes to buy my practice, because the corporates keep enquiring whether I want to sell and I have heard that the prices paid are very good I am not sure what to do, can you help?"
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A: The presence of the corporates has resulted in prices being obtained by practice owners trebling in the last five years. Unfortunately an individual is unlikely to
be able to fund a similar price to any indicative offers you have received or could receive.

We have found that once you have a corporate offer you should give your assistant the option to make an offer based upon the same information, or at least see if they can obtain funds for the purchase from the bank and at what level.
In most cases the banks level of funding is usually half the corporate offer.

1. Obviously you must be sure that you trust the individual at this stage as you do not want the information that you are selling, being given to the staff.
Do not give any indication of the level of offer you have received so far.

My advice is to let a broker deal with this situation as in can be very delicate and you should step back from any personal involvement.