Buyout in the UK

TaxAssist Accountants UK, the franchise delivering tax and accounting services for small businesses, has achieved what they believe to be a first in the franchise industry. 

On Friday 29th August 2014 the franchisor completed what is believed to be the first ever franchisee-assisted management buyout.  The deal, for an undisclosed sum, will see the TaxAssist Accountants UK franchise operation 32% owned by franchisees, 53% by the senior management team and 15% by long-standing external business partners.

“We believe this is a first ,” said Karl Sandall, the TaxAssist Group Ltd Chief Executive.   “Franchise operations have been bought by their management teams, but as far as we are aware never in partnership with their franchisees. More than half our franchise network, including franchisees and their staff, have invested in the company, which really demonstrates how strong the partnership is between franchisor and franchisee.”

“From our perspective, it opens up future opportunities for Canadian franchisees to purchase shares in the franchise on our internal market. We’re well on our way to signing up our first franchisees in Ontario and plans are in place to expand into Quebec, British Columbia and Alberta. “

“We’re attracting considerable interest, both from potential franchisees and from the small business community who will become their clients. The business model:  a welcoming, straight-talking approach, with accountants in storefront offices in highly visible locations, is exactly what small businesses need in their local communities.”

John Westgarth, who founded the business in 1995 and has seen it expand across the UK and the Republic of Ireland and now in Canada, with plans to launch in Australia, New Zealand and the United States in 2015, retires as Chairman and Director.

The TaxAssist Accountants franchise has seen year-on-year growth of 14% in the UK, building a fee income of more than £30 million (CA$48 million), across a 190-strong franchisee network, with a client base of nearly 50,000 small businesses.

The company signed its first international Master Licence in the Republic of Ireland five years ago, which is now a 23-franchisee network with fee income of almost €3 million (CA$4 million).

Stephen Reed, corporate finance director at Price Bailey UK, Martin Simons, Senior Commercial Manager at HSBC UK and Mark Whittaker, Corporate and Commercial Partner, Ashton KJC Solicitors UK advised on the deal.

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August 2014

DISCLAIMER:  *Any sales, revenue and other financial information discussed and referenced above is provided, for information purposes only, by TaxAssist Direct Limited., and TaxAssist Direct International Limited and is based upon the operation of TaxAssist franchised businesses in the United Kingdom and Ireland.   None of this information is a representation or warranty of the sales or revenue that can be expected to be achieved  in the operation of a TaxAssist franchised business in Australia.    The actual sales or revenue achieved by a franchised TaxAssist business in Australia may vary substantially from those achieved by TaxAssist Franchised businesses in the United Kingdom and Ireland.  Any financial information made available to prospective TaxAssist franchisees in Australia contained in franchise disclosure documents provided to such prospective franchisees.