As we endure another lockdown and the change of normality enshrouds us, the world keeps spinning and life goes on…
In the first wave of COVID-19 there was a high level of uncertainty, although, the beautiful side of humanity is that we adapt and evolve.
The lockdowns, do create anxiety, throughout community and the Accounting Industry, from the client base, the networks, the staff, the practitioner and twists back through personal life before it dissipates, and we ‘Pivot’ or adjust to the ‘New Norm’ (current jargon we hear a lot).
It’s tough out there but we survived and can survive, if we want to – we do.
Now into multiple lockdowns, in multiple locations, the question keeps getting posed to us at Jadeja Partners, “Are deals still going on?” and the reply is a resounding, “Yes”, albeit, slightly clunky at times.
With this, we wanted to share some ‘Accountancy Industry’ / ‘Transaction Chemistry’ friendly reminders and insights
- We are in a Service Industry and we all like the Human element
- Accounting Practices are all about Human interaction not just the software. Proactive client engagement during uncertain times is on the Practitioner not the client
- Buyers are still out there in droves. Banks are still keen to transact
- Prices have not slipped at all, to the contrary, Clawbacks are stable, Clawback timelines are stable and impressively, we are seeing Premiums being paid – it’s a good time to be an Accountant
- There MUST be a ‘Face to Face’ or ‘Meet and Greet’ meeting between Vendors and Purchasers in person. Skip this and you have a disaster in the making. ‘Human Chemistry’ is the key element
- You must NEVER buy a practice unsighted. Yes, the numbers tell the story, but the practitioner creates the ‘culture’ and holds the client’s ‘idiosyncrasies’
- Transactions are taking time with lockdown timeframes being ambiguous which is leading to staggered handover start times – stay flexible
- Handovers are clunky, even at the best of times. They need to be planned with open communication, documented, agreed upon and executed with precision – it’s not that hard
- Momentum of Firms are holding client attrition low, although, backlog of workload could hamper this in the future. Do note, Firms are still winning ‘new’ clients
- Everyone and I mean everyone, is seeking staff – we don’t see this being resolved for at least another 12~24 months
- In the meantime, my mobile is always on, “Let’s Talk”.
Stay safe everyone – looking forward to seeing you all soon!
Magnus Yoshikawa | Director, Jadeja Partners
Ph 0408 885 944