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Well yes, I am old school both by age and approach, I guess. Sticky recurring income is as I remembered it back in private practice 40 years ago was the traditional client who returned year in year out for accounting and tax work. The annual revenue formed the basis of what the goodwill/selling price of the practice might be as it was a multiple of that. Special assignment work such as a once off acting as investigative accountant in a public listing was not included.

I recollect back then, I could roughly ascertain profits weekly by knowing just three figures (a) gross revenue from timesheets from which I deducted 5% (b) gross wages to which I added 20% for on costs and (c) my pre worked out weekly costs of ‘doing business’. It was amazingly accurate.

I am specifically interested in the professional businesses because of the ease of business model and the protection from macro events. In tough times you don’t buy that diamond ring but you reluctantly get your tax done because it is a compulsory obligation.

My only concerns are change of law reducing that obligation, impact of AI (look at how it has hollowed out property valuers and say, surveyors - and - as you have alluded to in Australian Family Law, greed in rewarding directors for their wages content.

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Interesting concept and a brilliant track record. Almost unbeatable for those on the inside, maybe not so for the run of mill investor because of the (a) lack of recurring revenue and over reliance on large one off projects (b) lack of transparency via off Balance partnerships and (c) persistent & significant dilution.

Might I assume that a 20% NPAT/REVENUE is the ultimate dream for the average professional consultancy firm. What then is deemed average?

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more goodwill than revenue?

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