Accounting practices in NSW — whether general practice, tax-focused, or specialist advisory — are among the most consistently saleable professional services businesses in Australia. The buyer pool is deep, the revenue is recurring, and the multiples are well-established. But the deals that fall over do so for predictable reasons, and most of them come back to one thing: how much of the client base is loyal to the principal personally, rather than to the firm.
What accounting firms sell for in NSW
Accounting practices in NSW typically sell on a revenue multiple rather than an EBITDA multiple. The standard range is 0.9× to 1.4× annual recurring fees, with the multiple driven by client quality, fee mix, and how transferable the relationships are.
| Practice type | Typical multiple | Key driver |
|---|---|---|
| Sole practitioner, personal client relationships, no staff | 0.7–0.9× revenue | High key-person risk — buyer discounts heavily |
| Small practice, 1–3 staff, mixed compliance and advisory | 0.9–1.1× revenue | Some transferability, depends on staff retention |
| Established practice, team in place, systemised processes | 1.1–1.3× revenue | Recurring fees, low client concentration, documented workflows |
| Specialist advisory focus (SMSF, business advisory, M&A support) | 1.2–1.5× revenue | Higher-margin work, more defensible client relationships |
Why revenue multiples — not EBITDA?
Accounting practices are typically valued on revenue because the buyer is acquiring a client base and a revenue stream, not a profit margin. The buyer's own cost structure — whether they absorb the practice into an existing firm or run it standalone — determines the profitability. What they are paying for is the right to service those clients going forward.
This means the quality and stickiness of the revenue matters more than the current margin. A practice with $800,000 in recurring compliance fees from 200 SME clients is a more attractive asset than a practice with $1,000,000 in fees concentrated in 15 large clients — even though the second practice has higher revenue.
The transferability question
The central risk in any accounting practice sale is client attrition. Buyers know that some clients will leave when the principal changes — the question is how many, and how quickly. Practices where clients have been dealing with staff members (not just the principal) for years, where the firm has a strong brand identity, and where processes are documented and consistent, will retain more clients post-sale and command higher multiples.
Practices where the principal is the primary relationship for every significant client — where clients call the principal's mobile directly, where the principal handles all reviews and advisory work personally — are harder to sell and attract lower multiples. This is not a fatal problem, but it needs to be addressed before going to market, or priced into the asking price honestly.
Earn-out structures in accounting practice sales
Earn-out arrangements are common in accounting practice sales. The buyer pays a base price at settlement, with additional payments contingent on client retention over a 12–24 month period. This structure protects the buyer against attrition risk and allows the seller to capture full value if the client base transfers well.
Earn-outs are not inherently bad for sellers — they can result in a higher total price than a clean sale if retention is strong. But they require careful drafting. The retention metrics, measurement period, and payment triggers need to be clearly defined in the sale agreement. Your solicitor handles this — do not sign an earn-out structure without legal review.
Who buys accounting practices in NSW?
The buyer pool for accounting practices in NSW includes: larger accounting firms acquiring capacity and client bases; mid-tier firms expanding into new suburbs or sectors; individual accountants buying their first practice; and private equity-backed consolidators building scale in the professional services sector. The consolidator market has grown significantly in recent years and is now a meaningful part of the buyer pool for practices above $500,000 in annual fees.
Next steps
If you are considering selling your accounting practice in NSW — whether in the next 12 months or further out — the most useful first step is an honest conversation about what the practice is worth and what, if anything, needs to change before going to market. Contact Richard Matthews at Link Business NSW for a free, confidential appraisal.
