Are accounting practices really valued on cents in the dollar of fees?

It remains common market shorthand and you will hear it quoted. But buyers and their financiers price on profit, so a practice with a large fee base and thin margins will not achieve what the fee multiple implies. Treat it as a rule of thumb rather than a valuation.

What happens if clients leave after the sale?

That risk is usually shared through the deal structure. Part of the price is commonly deferred and adjusted against retained fees at twelve or twenty four months. The fairness of that mechanism matters as much as the headline number.

Do I have to stay on after settlement?

In most cases yes, typically six to twelve months. In this sector the handover is the product, because what the buyer is really acquiring is the transfer of trust from you to them.

Can I sell if I am a sole practitioner?

Yes, and there is a real market for it, but expect a lower multiple and a longer handover. Buyers are pricing the risk that the relationships do not survive your departure.

Selling a Professional Services Firm in Australia

Professional services firms sell for 2× to 4× EBITDA, most often between $300,000 and $1.5 million, and take around 90 to 180 days. The number turns almost entirely on one question: how much of the revenue continues if you stop turning up.

If you own an accounting practice, financial planning business, law firm, IT services company or consultancy, this page covers what yours is likely worth and what buyers examine before committing.

Typical multiple: 2×–4×
Typical sale price: $300k–$1.5m
Time to sell: 90–180 days
Buyer demand: High

What professional services businesses sell for

The headline range is 2×–4× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.

Annual EBITDA	Typical multiple
Under $100k	0.8× – 1.8×
$100k – $250k	1.2× – 2.4×
$250k – $500k	1.6× – 3×
$500k – $1M	2.2× – 4×
$1M – $2.5M	3× – 5×
$2.5M – $5M	3.8× – 6.5×
$5M – $10M	5× – 8×
$10M+	6× – 10×

Two firms with the same profit sell for very different multiples depending on the shape of their revenue. Recurring compliance work or retainers under written agreements sit at the top of the range. Project work won personally by the founder, repeated year to year on goodwill alone, sits at the bottom.

How long it takes to sell

Ninety to one hundred and eighty days is typical. Most of that time goes on two things: verifying that the client base is genuinely transferable, and agreeing what happens if it is not. Deals in this sector very often carry a retention or clawback mechanism, and negotiating that fairly takes longer than agreeing the headline price.

The five things buyers pay for

Recurring & retainer revenue

Recurring revenue under a written agreement is the most valuable thing you own. Annual compliance work, managed service contracts and retainers give a buyer visibility of next year before they pay for it. Revenue that has to be won again every year is discounted heavily, even where it has recurred reliably for a decade.

Client retention rate

Buyers want retention history rather than a client list. How many clients have you had for more than five years, what has your annual attrition been, and did the ones who left take a fee that mattered. A stable base at modest growth is generally worth more than a growing base with churn underneath it.

Staff qualifications & tenure

Qualified, tenured staff who hold client relationships are an asset, provided they stay. Buyers will ask about employment agreements, restraints, notice periods and remuneration against market. A firm where the technical capability is concentrated in one senior person carries the same risk as a firm concentrated in its owner.

Owner-dependency level

This is the number that decides the multiple. If you personally deliver the work, hold the client relationships and sign every piece of advice, the buyer is acquiring your calendar. Firms where the owner has moved into oversight, with client relationships genuinely shared across the team, sell at a different level entirely.

CRM, systems & documented workflows

Documented workflows, a maintained CRM and consistent file management matter more here than owners expect. They demonstrate that the work can be performed to the same standard by someone else, which is the entire proposition a buyer is testing.

Licensing, client consent and professional obligations

What has to transfer depends on the discipline. Financial planning requires the buyer to hold an Australian Financial Services Licence or operate as an authorised representative. Legal practice requires a current practising certificate and brings trust account obligations with it. Accounting carries professional body requirements. In every case the buyer needs the relevant authorisation in their own right, which narrows the buyer pool to people already in the profession.

Clients are not property and do not transfer with the business. Engagements generally need to be novated or re-signed, and clients can decline. This is why professional services deals so often include deferred consideration tied to retained fees, and why the handover period is usually longer than in other sectors.

Professional indemnity obligations continue after settlement for work already performed, so run-off cover needs to be arranged rather than assumed. Work in progress and outstanding debtors are normally dealt with separately from the sale price, and how they are treated should be settled early because the amounts are rarely small.

What buyers will ask for

Recurring versus project revenue. What proportion is contracted or genuinely annual, and what has to be won again each year.
Client concentration and retention history. Your largest clients as a share of fees, and your actual attrition rate over three years rather than an estimate.
Staff tenure, agreements and restraints. Who holds the client relationships, whether they are staying, and whether existing agreements would survive a challenge.
Work in progress and debtors. Ageing of both, and your write-off history. Poor WIP discipline reads as a firm that does not price or collect well.
Professional indemnity claims history. Past claims, current cover and what run-off arrangements will be needed at settlement.

Common questions

Are accounting practices really valued on cents in the dollar of fees?: It remains common market shorthand and you will hear it quoted. But buyers and their financiers price on profit, so a practice with a large fee base and thin margins will not achieve what the fee multiple implies. Treat it as a rule of thumb rather than a valuation.
What happens if clients leave after the sale?: That risk is usually shared through the deal structure. Part of the price is commonly deferred and adjusted against retained fees at twelve or twenty four months. The fairness of that mechanism matters as much as the headline number.
Do I have to stay on after settlement?: In most cases yes, typically six to twelve months. In this sector the handover is the product, because what the buyer is really acquiring is the transfer of trust from you to them.
Can I sell if I am a sole practitioner?: Yes, and there is a real market for it, but expect a lower multiple and a longer handover. Buyers are pricing the risk that the relationships do not survive your departure.

Find out what your business is worthFree valuation tool. Five questions, indicative range.Talk to a broker confidentiallyA 30-minute strategy call. No obligation.

Other industry guides

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Before you sell

Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.

Last updated September 2026