The value sits in the client relationships. The price sits in whether they stay.
A financial planning practice is bought for its recurring revenue and the durability of its client relationships. Licensing arrangements, adviser dependency, revenue quality and the structure of the deal all shape what an acquirer will pay — and how much of that price you actually receive. Rob Knights Practice Broking brings fifty years of professional practice economics to that conversation.
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A complete service for practice owners considering a sale — from initial appraisal through to a settled transaction, run with discretion and to your timeline.
We manage the sale on your behalf — promotion, qualification and negotiation — so only genuine, qualified parties reach you, and you keep advising your clients while the transaction runs.
An honest read on how the market will value your practice before you take any step towards a sale — and formal valuations where a defined purpose, such as an equity change or a dispute, requires one.
Price is only part of it. Retention conditions, deferred consideration, transition periods and what happens if clients leave are negotiated at arm's length on your behalf.
Your practice's identity stays protected. Qualified parties are approached discreetly, and nothing that identifies your practice is released before a confidentiality agreement is signed.
Most practices are valued on a multiple of recurring revenue. That is a starting point, not an answer. Two practices with identical revenue can sell for materially different amounts — and the difference is almost always found in these four places.
An acquirer is buying the fee line that survives the transition. Ongoing advice fees under current arrangements, fee levels relative to portfolio size, client age profile and the proportion of revenue tied to a small number of clients all affect what a buyer will pay for the same reported revenue.
If the relationships belong to you personally, the buyer is taking on retention risk and will price for it — usually through a longer transition and a larger deferred component. If the relationships belong to the practice, the deal is cleaner and the terms are better.
How you are licensed shapes who can buy you and how the transaction is structured. Advice file quality, remediation exposure and the state of your compliance records are examined closely in due diligence, and unresolved issues reduce price or stall a deal entirely.
A headline price paid mostly in deferred instalments, contingent on client retention, is not the same as the number on the front page. How much is paid at settlement, what triggers the balance, and who carries the risk if clients leave often matters more than the multiple itself.
The price is what you agree on. The terms decide how much of it you actually receive.
The questions an acquirer will ask, in the order they will ask them. Work through these before you speak to anyone. Every item you cannot answer clearly is either a discount on the price or a delay in the process.
Most practice owners answer clearly on the financials and stall somewhere in adviser dependency or compliance. That is the normal starting point, not a problem — provided you find it now rather than in due diligence.
Few brokers show you how the process actually runs before you commit. We think you should know exactly what to expect. Here is the shape of a typical engagement.
An objective view of what the market would pay for your practice — and what would lift that figure before you go anywhere near a buyer.
Positioning the practice, assembling the information a serious acquirer expects, and addressing value risks while there is still time to fix them.
Promoting the opportunity so genuinely interested buyers can find it — while releasing nothing that identifies your practice until a confidentiality agreement is signed.
Structuring and negotiating price, terms and retention conditions on your behalf, through to a settled transaction, with you informed at every stage.
The questions practice owners raise most often when they first start thinking about a sale.
Earlier than most owners think. The practices that sell well begin preparing years before they go to market, not weeks. As a rule of thumb, allow at least twelve months before you want to be at the negotiating table. That window is what lets you reduce adviser dependency, tidy the compliance position and normalise the financials while there is still time for it to count.
Far more than a multiple of recurring revenue. Four things move the price above all else: the quality and durability of the revenue rather than its headline size, how much of the client relationship sits with you personally rather than the practice, the state of your licensing and compliance position, and the structure of the payment itself. Two practices with the same revenue can be worth markedly different amounts because of those factors.
Rarely all of it. Acquirers commonly hold back a portion of the price and pay it over an agreed period, contingent on client retention. How large that deferred component is, what triggers payment, and who carries the risk if clients leave are negotiable — and they matter as much as the multiple. Our role is to negotiate those terms on your behalf rather than let them be set by the buyer.
It depends on how you are licensed and on how the transaction is structured, and it needs to be worked through early because it shapes who is able to buy your practice at all. Licensing arrangements, any agreements you have in place, and the treatment of client authorities can all affect timing and structure. We work alongside your legal and tax advisers on this rather than in place of them.
The opportunity is promoted so genuine buyers can find it — in that sense the listing is public. What stays confidential is your practice's identity. We release no particulars — your name, your financials, or any detail that could identify the practice — to any party until they have signed a confidentiality agreement. That lets us generate real interest without your clients, staff or competitors knowing which practice is for sale.
Yes to the first, and there is no cost for the second. A first conversation with Michelle Knights is confidential and carries no obligation. The aim is simply to understand your practice, your situation, and whether we are the right fit for the work ahead.
We have spent half a century inside professional practices — benchmarking them, valuing them, and advising the people who own them. Financial planning has been part of that work for as long as accounting firms have offered it. That perspective is what we bring to a practice sale.
We valued professional practices long before we brokered them, and we still do. Goodwill valuations for accounting, financial planning and legal practices remain core work — which means an appraisal from us is grounded in method, not a listing pitch.
Our benchmarking surveys have tracked the economics of professional practices for decades, including the performance of financial planning within them. When we tell you where your practice sits, it is measured against real data rather than impression.
A sale process can unsettle clients, staff and co-owners if it is mishandled. Discretion is built into how we operate — from the first conversation through to settlement.
If you would prefer a direct conversation about your practice and your options — privately, before anything else — book a confidential session with Michelle Knights. No agenda, no pressure, no record.
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The full checklist, set out for you to work through with your co-owners or your own adviser — with notes on why each item matters to a buyer and what to do about the ones you cannot answer.
Request your copy and it will be with you in moments.
Download the guideAt Rob Knights Practice Broking, we specialise in connecting accounting practices and financial services businesses with the perfect buyers or partners. Whether you’re looking to sell your firm, acquire a new practice, or explore strategic partnerships, our expertise ensures a seamless and successful transaction.
Explore our current listings to find the right opportunity for your business goals, or browse our past listings to see the success stories we’ve helped create.
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