FAQs

How much do you pay for firms?

This depends on the size and profitability of your firm. Smaller firms are typically sold via a rule of thumb or cents in the dollar method, and larger firms via a multiple of maintainable profits.

Will I need to sign a restraint?

Yes we will need a restraint to protect our investment. However we are always happy to give you reasonable flexibility to help family, friends or your preferred charity, the exact nature of the restraint will depend on the deal in question and your plans.

How much consideration will be retained?

Typically between 15% - 20%

Will CAAA NEXT consider a 50/50 or minority investment?

This type of transaction is currently outside our investment selection strategy.

Will CAAA NEXT look at merger opportunities?

Yes. As long as well like each other, and the point above is met.

What will my role be in transition?

Introduce us to your clients, facilitate the production and handover of work, and participate in client social functions and networking. Help us keep clients and staff happy and make sure everything tracks well for retention and WIP recovery.

Will I still get a say in how client work is done?

Absolutely, your deep client knowledge is of critical importance to building client trust, and making sure all “potholes” are avoided.

Will I have input into billing and other client matters?

Yes.

Will I be able to take holidays?

Yes. At minimum 4 weeks, but in most instances longer holiday allowances have been negotiated.

Can I stay on as a consultant later if I want?

Absolutely yes. This in fact is the best case scenario after initial employment. It gives clients and us maximum comfort, and maximises what we can pay for your firm.

How will this be marketed to my clients?

This is open to discussion, but we have found that honesty is the best policy. Simply telling clients you are slowing down, but will still be available if needed is a good way to go.

Do you buy my debtors?

Typically not. Often we will collect them and pass them over as a courtesy service.

How do you value my WIP?

This is a collaboration at reaching a consensus, at some point between exchange and settlement. CAAA also has an innovative way to de-risk the process.

Have your prior deals gone well

Our track record is a modest 100%!

Will you keep my staff?

Yes