Listening to Time of the Season by The Zombies put me in mind of the different seasons in the accounting marketplace.
Although, for many, the workload in professional practice is consistent throughout the year, for others the sector is seasonal with peaks and troughs marking the passage of time.
For those of us with children we are possibly even more aware of the relentless ticking of the clock as we watch those children grow, travelling through this journey of life.
In accountancy the ‘seasons’ are, of course, marked by milestones such as Self-Assessment (for many a time of chaos and stress) or the ‘Ghost of Tax Return Season from Januarys Past’ casting its dreaded shadow over Christmas and new year.
Year end deadlines
Then we have the financial year end in April and the deadlines it brings; the changes to be implemented, updates to be made, professional development to be completed.
There are quarterly budgets that herald changes affecting the client, the sole-traders, the collaborators, the SMEs, the investors, the forward-thinkers, the professionals, the care-givers, and the care-takers.
Then we have the usual deadlines – submission of VAT, PAYE and corporation tax – to remind us that the clock keeps ticking.
These markers represent distinct seasons within the associated mergers and acquisition market, too.
Quietest season
For the brokers and agents who facilitate the purchase and sale of goodwill, January is often the quietest season.
That’s when many keep their heads down and plough through stacks of files, chasing clients, inputting calculations and quietly contemplating the next stages of their professional lives. That could mean an exit, growing the practice, or simply implementing a more effective staffing structure.
For the overworked, it is usually the Self-Assessment season that feeds the desire to find the relief that they seek. If that solution is an exit, then the leap is most likely to be made shortly after the SA season has ended.
Perhaps on return from a precious post-January break, is when the broker’s phone is most likely to ring, signalling the start of the first annual selling season.
Ambitious practitioner may strike
That is also when the ambitious practitioner may strike, setting the wheels in motion for looking at ways to grow – perhaps by acquisition.
Thus February through to the summer holidays is the busy season as merging partners are sought, acquisition opportunities pursued and prospective vendors are tempted out from remote corners by offerings of attractive multiples, short payment schedules and flexible terms.
Then, almost as suddenly as the selling season began, the seasons change once more and for the broker it all starts to quieten down again as we enter the summer lull.
So what is it that makes the autumn the busiest M&A season of them all?
Could it be the sweet nostalgic taste of those heady weeks on the beach in the sun still on the lips but fast becoming a dim and distant memory? Or could it be the anticipation of another January that weighs heavily on the practitioner’s mind? Please take note, my ambitious friends – this second annual selling season could represent rich pickings for the acquisitive accountant if they are prepared to act now!
Emergency exit
As Christmas approaches once more the buying/selling season abates, as those who don’t have the luxury of sufficiently motivated staff and smooth-running systems get their heads down, instead changing their focus to the latest revisions, implementations, complications and not to mention tax – will it ever be made digital after all – or perhaps it can be avoided somehow, maybe via a swift (emergency) exit?
If you want to make a change, whatever that change may be, autumn could be the next best time to make it happen, for now is the Time of the Season. Tick tock. Tick tock.
This article also appears on the ICPA website. Dedicated to supporting and promoting the needs of the general practitioner. You can find them at www.icpa.org.uk, email [email protected], by phone on 0800-074-2896.
