TaxAssist Direct Acquisitions, a fully-owned subsidiary of The TaxAssist Direct Group (the Group), reports a milestone £2m purchase by acquiring a major stake in the largest franchisee in its accountancy practice network.
Daren Moore FCCA, chief executive officer of the Group, said: “I am pleased to announce the successful completion of the first of our planned acquisitions for 2024, with The TaxAssist Direct Group taking a majority stake in Mike and Penny Melling’s TaxAssist Accountants franchise business.
“Mike and Penny’s accounting practice has been built and operated very effectively over the past 12 years and clearly met the key criteria we set when looking at acquisition and resale opportunities.
“This purchase marks a significant milestone in the delivery of our ambitious Strategic Plan. The acquisition will immediately boost the profitability of the Group and provide us with access to a well-run accounting practice.
“This will create substantial economies of scale and will allow us to cross sell and upsell services at a local level, capitalising on the opportunities provided by payroll, tax consulting and financial planning by TaxAssist.
“The acquisition will also support our ongoing development and improvement of the services we provide to our franchisees creating the opportunity to develop and test ideas, refine processes and continue to build our ‘TaxAssist Practice Engine’ model in a live practice environment which can then be shared with our networks.
“This year is proving to be a very busy year. We began with the launch of our new group branding, which has received a hugely positive response from our network and their customers. We have followed up with a key acquisition which will create future opportunities for shareholders and franchisees alike. These are important elements of our longer-term strategic plan and we look forward to announcing further exciting news.”
This acquisition now sees the Group operate three franchise territories – Harpenden, St Albans and Radlett; Beaconsfield, High Wycombe and Potters Bar; Welwyn Garden City and Hatfield. Mike Melling, while no longer a TaxAssist Accountants franchisee, will continue to oversee these operations through his role as chief operating officer on the Group board.
The Group adds that it has a unique ownership structure among the franchise sector, with circa 60 per cent owned by franchisees. New franchisees operate their own local business as part of the TaxAssist Accountants network, and if they choose, have the opportunity to become a shareholder in the Group.
Posted: 25th June, 2024