Clearsky, Parasol, SJD & Nixon Williams (Optionis) For Sale at £300m !!

[Waldorf]

I see that this huge group, already comprising Clearsky, Parasol, SJD & Nixon Williams, has now added First Umbrella & First Freelance to its stable.

Never heard of them, anyone else?

[Darren at Fox-Bartfield]

First Freelance

Yep, spoke with the guys there a few times. Interesting that SJD ended up top of the pile in the bidding war for First Freelance.

[Waldorf]

Bidding war! Seems unlikely, who else would be pouring cash into this sector?

[Darren at Fox-Bartfield]

First Freelance

Quite a few were in for it from what I understand. The valuations being a lot higher than traditional accountancy practices despite the increase in risk.

Have you a link to the news?

[Maslins]

Quite a few were in for it from what I understand. The valuations being a lot higher than traditional accountancy practices despite the increase in risk.

Indeed, the SJD sale price did baffle me. "Traditional" accountancy firms sell for give or take £1 per £1 of turnover. SJD went for something like £4 per £1 of turnover from what I read (how reliable that was I don't know). Sure there's several reasons for this, higher profitability, dominance in marketplace, perhaps fingers in related pies etc. Like you say, the risk is surely much higher though, which I'd expect would put downward pressure on the value.

From my own experience, getting an accountancy practice of the ground is very hard (as the vast majority of clients will come from referrals...not good when you have no existing clients!). However, once you've got a decent base of clients, it has seemed to snowball with negligible marketing effort.

[JoJoGabor]

Maybe HMRC have bought them for access to all our accounts. Hahaha. Hang on. They could have done

[simes]

Echoing much of what has been said before (while slightly off topic);

I reckon all firms in the Private sector will indeed play it safe and declare everyone inside IR35. Why would they do otherwise? A client won't know anything about IR35 and to be frank, nor will they ever need to if they operate as above. Their one and only position would be to safeguard against getting caught up in some time wasting and potentially expensive court case years down the line.

To answer the position that contractors will not take contracts inside IR35, if all clients operate as I believe above, then the environment will shift, there will be contractors willing to take the jobs and a Brave New World is firmly introduced.

It will be a brave client indeed to get someone (Who? HR would never be up to snuff.) to get clued up on something of this ilk. And to whose benefit? A contractor.

Dunno. Don't see it myself.

[cojak]

Echoing much of what has been said before (while slightly off topic);

I reckon all firms in the Private sector will indeed play it safe and declare everyone inside IR35. Why would they do otherwise? A client won't know anything about IR35 and to be frank, nor will they ever need to if they operate as above. Their one and only position would be to safeguard against getting caught up in some time wasting and potentially expensive court case years down the line.

To answer the position that contractors will not take contracts inside IR35, if all clients operate as I believe above, then the environment will shift, there will be contractors willing to take the jobs and a Brave New World is firmly introduced.

It will be a brave client indeed to get someone (Who? HR would never be up to snuff.) to get clued up on something of this ilk. And to whose benefit? A contractor.

Dunno. Don't see it myself.

For the same reason that you are seeing more outside IR35 contracts in the Public Sector.

They need contractors, the sort who walk away from inside contracts.

[Fred Bloggs]

For the same reason that you are seeing more outside IR35 contracts in the Public Sector.

They need contractors, the sort who walk away from inside contracts.

Both of us then.

[churchillsnip]

#famouslastwords
Assuming we're talking IR35 public sector changes moving to the private sector too, I don't think it'll be as cataclysmic as some believe. Put my thoughts on this here if anyone's interested (or mods remove if you feel too "salesy"). I think whilst it will lead to some reduction in the number of Ltd Co contractors, I hope it would then lead to more stability.

Re the OP, hmmm...despite my comments above, I've checked down the back of the sofa and sadly don't have £300m.

Thanks for the article.

I can see an insurance market building up to handle the risk, and providing premiums based on risk factors, therefore incentivising clients to minimise risk.

Two things though.

1. That is an added cost that will need to be borne somewhere.
2. That does create more 'friction' for a potential client to hire someone. A friction that doesn't exist right now.

In the short term, I don't see how the number of advertised contracts doesn't hit rock bottom, increasing competition, driving down rates, driving people back to permieland etc.

I hope your conclusion that time could be the deciding factor is true, though I struggle to see how the combination of forces don't create a short to medium term bear market for contractors.