This guide outlines how a book of business or parcel of fees can be bought. It is a recommendation that is not exhaustive nor purports to be complete. Different methodologies of purchase may apply to different book of business purchases. Please seek professional assistance and advice prior to finalising any documentation.
1. Decide to buy a Client Book / Parcel of Fees / Book of Business / Accounts
2. Brokers may charge a commission between 4% – 8% of the value of the book.
3. In order to message vendors you will be prompted to register and create a profile by completing the following fields:
- Organisation (Not visible to others)
- Name (Not visible to others)
- Address (Not visible to others)
- Phone (Not visible to others)
- Email (Not visible to others)
- Username (Not visible to others)
- Password (Not visible to others)
4. Easily search for a Client Book and filter by category, location and price range.
5. Subscribe to alerts in order to be notified when new listings are posted according to your selection criteria.
6. Save a shortlist of favourite listings under your profile.
7. Connect with vendors through your secure online messaging service.
8. Sample forms are provided here.
IMPORTANT NOTICE: This form serves as an example of a contract between a vendor and purchaser and must be adjusted to fit particular circumstances. No warranty of completeness is given. Please consult with a legal practitioner when completing it. Please contact us if you would like us to refer you to external competitively priced lawyers who are experienced in these contracts and transactions. It is recommended that you use professional legal advice during this process.
- Confidentiality Disclosure Agreement This is needed to keep details confidential with the prospective buyer when furthering negotiations.
- Final Contract This will be specific to your circumstances and should include the following details:
- Due diligence procedures
- Sale price and retention/claw back
- Restraint of trade/contact with clients being sold
- Introductions to clients
9. Once the due diligence is completed, settlement and handover occurs.
An initial deposit e.g. 5% can confirm the sale until final settlement occurs. The remainder of retained funds held in trust (e.g. 10%) will be handed over to the vendor if the specified percentage of clients remain after a certain period of time (e.g. 1 year).