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Frequently Asked Questions

General Questions

  • Q:
    What is the Engagement Fee for?
    A:

    The Engagement Fee of £875 + VAT helps to cover the costs of finding suitable candidates to help resolve succession/exit issues.

    We provide each selling candidate with a detailed questionnaire to generate a practice profile.We will guide each selling/acquiring party through each stage of the selling process from initial exploratory meetings through to assisting structuring a deal and creating a draft contract.

    The fee is a commitment to the Proctor Partnerships service and is REFUNDABLE in full in the event of a successful conclusion with another practice within 24 months of Engagement.

  • Q:
    In the event of a successful conclusion what rate is charged by Proctor Partnerships?
    A:

    Proctor Partnerships charge a standard rate of 2.0% of the agreed consideration to each party (less the Engagement Fee). The valuation will revolve around GRF (Gross Recurring Fees)and profit before tax (pbt).In the event of two firms linking through CPS (Centralised Partnering Solution), the valuation of the lower GRF will be basis for the application of the standard rate. 

  • Q:
    How is a practice valued?
    A:

    The traditional valuation is a factor of GRF (Gross Recurring Fees). Staffing continuity, IT infrastructure, office ownership, location and parking, standard of client base/categories of clients/client age profile, etc. would all have a bearing upon the value of a practice. 

    However,who today would value a business for sale purely based on turnover?

    An alternative view (and probably a more realistic valuation) is to take a multiple (probably 3 times) of profit before tax as an accurate starting point for the valuation of the practice.

    Although Proctor Partnerships may sometimes not get directly involved in the negotiation process,as part of the Engagement Fee we would be delighted to assist with the valuation procedure to help in achieving a successful conclusion for both parties.Isaac Ginsbury has over 10 years experience valuing practices.

  • Q:
    What other factors may be taken into account? Payment/settlement period, client retention?
    A:

    Payment for a practice can be made over a number of years.This may help will client retention. An allowance may be factored in for client retention.

  • Q:
    Do Proctor Partnerships assist practices throughout the UK?
    A:

    Initially Proctor Partnerships was dealing with practices in the M62 corridor, but since November 2012 has expanded its services nationally.

    We are happy to deal with practice sales from Inverness to Plymouth!