Selling Your Accounting Practice in 2026: What Premium Buyers Are Actually Looking For
Australian accounting practices are selling — but not all of them, and not at the same price. The gap between a premium multiple and an average result comes down to decisions you can still make today.
Run the Sale-Readiness Audit ↓
If you are planning to exit, sell down, or transition out in the next one to three years, you have a brief window of opportunity — and the decisions you make now will determine your final sale price.
Australian accounting practices are transacting. Buyers are active. But the firms achieving premium multiples are not necessarily the largest or the most profitable — they are the ones that are prepared. The gap between a premium result and a discounted one comes down to decisions that are entirely within your control, right now, while you still have time to act.
June 2026 Charge Rates & Salaries Report
The benchmarks behind those salary and recovery conversations — built on real Australian firm data, not estimates. Participant pricing from $495 incl. GST.
Register Now →The "Nice Guy" Margin Trap
The first — and frankly most dangerous — value leak I see is in the relationship between staffing costs and charge rates. We have been discussing this in our benchmarking reports for years, but the current market pressures have made it critical.
We are all facing salary pressure. To retain quality talent, you have to pay a market rate. But I see so many practitioners being incredibly nice about salary reviews without being commercial about recoveries.
The benchmark we use is clinical: employment costs — including a market salary for the principal — must be below 35% of turnover. To achieve that, you need a 3× labour multiplier. If your Senior Manager costs you $160,000, they need to be recovering $480,000 in fees. If they are not, you either have a pricing problem or an efficiency problem.
We see this repeatedly in valuations — employment costs creeping toward 45%, with a principal who genuinely believes they are doing the right thing by their team. From a buyer's perspective, that is a bloated cost structure, and it will be priced accordingly.
"A buyer is not going to pay a premium to take over a firm where the margins are already squeezed to the bone. Every dollar you fail to recover is a dollar of equity you have gifted to your employees."
Audit your recoveries immediately. If 80% of your fee-earners are not hitting the 3× mark, it is time for some uncomfortable commercial conversations.
Are You an Operating System or Just the Face?
The biggest fear every purchaser has is key person risk. They are terrified that the day you depart, your A-tier clients depart too.
If you are the only person your best clients want to talk to — if you haven't prepared a tax return in three years but you are still the primary face of every major meeting — then your goodwill is personal, not commercial. In the eyes of a modern buyer, that is a high-risk discount waiting to be applied.
"The firms that achieve the highest multiples have transitioned beyond being the principal's practice and have become an operating system."
The transactions we see achieve the strongest results share a common thread: senior and intermediate staff managing key client relationships end-to-end, with the principal largely removed from day-to-day client contact. The purchaser in those deals is not buying a fee base — they are buying a functioning, independent machine.
Transition those relationships today. Introduce your senior managers. Let them be the face of the year-end review. It might hurt the ego, but it adds significantly to the bank balance.
The "Bogus Broker" and the Fishing Expedition
We see a pattern in this industry that is worth naming directly. Practices list with brokers who make unrealistic promises, generate few serious introductions, and in some cases are not even operating with the appropriate licences in the relevant state. The vendor pays upfront fees and waits. Months pass. Nothing of substance materialises.
This behaviour gives those of us who do the right thing a bad name — it is no different from someone calling themselves an accountant or lawyer without the qualifications. But the risk does not stop at choosing the wrong broker. The deeper danger is the due diligence fishing expedition.
Many vendors get tetchy about due diligence, and for good reason. Extensive DD is often conducted by parties who are simply trying to see if they can get a bargain, stir up your staff, and review commercially sensitive information without genuine interest in a fair deal.
"Due diligence is a confirmation exercise. A purchaser should be able to ascertain whether they wish to buy from the Information Memorandum and early discussions — DD simply confirms the data is accurate."
The Sale-Readiness Audit
Be honest with yourself. Every "No" is a potential reduction in your final sale price.
The 3× Multiplier — Do at least 80% of your fee-earning staff meet the 3× labour multiplier?
The "Old Money" Test — Is your WIP and Debtors under 45 days? Buyers hate buying your old headaches.
Normalise Your P&L — Have you removed one-off non-business expenses like personal travel or lifestyle vehicles from your P&L?
The SOP Audit — Are your standard operating procedures documented, or do they only exist in your head?
IT Alignment — Are your systems modern and in the cloud? Unusual or outdated hardware is seen as a major negative.
Leases & Commitments — If you are planning to depart soon, do not lock yourself into a five-year lease. Most purchasers want to relocate acquisitions to their own premises.
Pricing Recency — Have 100% of your clients had a fee review in the last 12 months?
Service Mix — Is at least 70% of your revenue recurring compliance work rather than ad-hoc projects?
Audit Services — As RCA numbers dwindle, do you have a plan for your audit fees? If your successor does not want the work, you will not get paid for it.
Knowing Your Number
The hardest conundrums in any transaction always centre on value. Overpricing is far more common than vendors realise — and the cost is not just a lower sale price, it is months or years of your time, energy, and focus tied up in a process going nowhere. Getting the number right from the outset is not a compromise; it is strategy.
An early, planned departure is far better and more successful — in terms of overall satisfaction — than a forced, rushed exit. Knowing your practice value is the cornerstone of proactive succession. It highlights the gaps while you still have the time and energy to fix them.
Resources for practitioners preparing a sale
For those who want to understand the process from the inside — whether working with a broker or managing aspects of the sale directly.
Information Memorandum Template
A professionally structured IM template used to present a practice to serious buyers — designed by one of Australia's most experienced practice brokers.
$165 incl. GST View Product →
Buy or Sell Without a Broker
A complete toolkit for practitioners managing a sale or acquisition independently — the structure, documents and process steps used in professional transactions.
$296 incl. GST View Product →
DIY Practice Listing
List your practice on the Rob Knights Practice Broking site and reach our registered buyer network — with a consultation with Michelle to refine your listing.
From $330 incl. GST View Product →
Wondering where your firm sits
on the attractiveness scale?
We would welcome the opportunity to assist with a completely confidential, obligation-free — and honest — conversation.
Book a 15-minute call A complimentary 15-minute call with Michelle · no obligation Or call Michelle on (02) 9233 4333
What practices are selling for, and what is moving the numbers
Michelle’s monthly note on practice valuations, buyer activity and the conditions we are seeing across accounting, financial planning and legal firms.
