H&R Block confirmed to Accountants Daily it has set its fee acquisition target at $2 million for this financial year. In the last three years, H&R Block has acquired 10 independent practices, totalling about $3 million in fees.
The network will be eyeing firms which offer diversification opportunities beyond its core services of tax return preparation, although director of tax communication, Mark Chapman, told Accountants Daily this will remain a central focus.
Firms with advisory services, small business services, bookkeeping and SMSF offerings are of particular interest.
The ideal profile of a firm is one where the principal is looking for immediate or imminent retirement, with a team of staff who can preserve goodwill.
Typically, H&R Block acquires firms with a turnover of $500,000 to $1 million, where up to 70 per cent of revenue is generated from individual returns.
“It’s all part of our drive to expand the services we offer to clients in our market. Whilst we’ll keep a focus on our core business – tax return preparation for individuals – we’re also diversifying into tax advisory services, business services, bookkeeping, SMSF and financial advisory services,” Mr Chapman told Accountants Daily.
H&R Block recently teamed up with with InFocus Financial Advisers to form a national referral network, with a view to diversify its service offerings.