5 Inspiring Stories of Accounting Firm Owners Who Sold on Their Terms
Selling an accounting firm can mark a significant milestone in an owner’s life. Whether the goal is financial independence, ensuring a legacy, or preserving a company’s culture, the process is deeply personal. Here, we explore five real-life examples of accounting firm owners who successfully navigated this journey and sold on their own terms.
- Jane Roberts: Strategic Planning Yields a Premium Sale
Jane Roberts owned a growing accounting firm in Brisbane and decided it was time to sell and shift focus to personal priorities. Recognizing the importance of preparation, she spent three years optimizing her firm to attract premium buyers.
Her steps included:
- Streamlining operations: She adopted cloud-based accounting tools and automated routine processes.
- Securing long-term client contracts: These multi-year agreements boosted buyer confidence in future revenue.
- Improving profitability: Jane reduced operating costs by 20%, showcasing a lean, efficient business.
The result? Jane sold her firm for 3.2x annual revenue, well above the industry average of 2x–3x. She also ensured that her team and clients transitioned smoothly to the new owner.
Key takeaway: Investing time in preparing a business for sale maximizes valuation and ensures a smoother transition.
- Kevin Miles: Empowering Employees with an ESOP
After 20 years of running a boutique CPA firm in Sydney, Kevin Miles wanted to retire while maintaining the culture his employees valued. Rather than selling to an external buyer, Kevin opted for an Employee Stock Ownership Plan (ESOP).
The process:
- Kevin sold shares gradually to his employees, transitioning ownership over five years.
- This approach kept the company’s leadership intact while ensuring staff morale remained high.
- Kevin received a steady income as part of the structured buyout, providing financial security.
Kevin’s firm retained 100% of its employees, and clients reported a seamless transition under the new leadership.
Key takeaway: An ESOP is ideal for owners who prioritize legacy and employee well-being over an immediate payout.
- Lisa Huang: Scaling Through a Strategic Merger
Lisa Huang specialized in accounting for nonprofits, carving a niche in Melbourne’s competitive market. Her firm’s rapid growth presented a new challenge—how to scale nationally while maintaining the firm’s integrity. Lisa chose to merge with a larger firm that shared her vision.
Key highlights of the merger:
- She retained a board position, influencing the direction of the new, larger organization.
- A profit-sharing agreement ensured Lisa continued to benefit from the firm’s success post-merger.
- The merger allowed her clients access to broader resources and services.
Within two years, Lisa’s firm saw 25% annual revenue growth, far exceeding her previous rate of 10%.
Key takeaway: Strategic mergers can open doors to new opportunities while allowing sellers to stay involved in leadership roles.
- Thomas Grant: Attracting Private Equity for Maximum Value
Thomas Grant owned a multi-location accounting firm spanning Perth and Adelaide, generating over $4 million in annual revenue. With robust operations and profit margins exceeding 25%, Thomas’s firm attracted the attention of private equity investors.
How he sealed the deal:
- Thomas emphasized the scalability of his firm’s cloud-based solutions, which appealed to growth-oriented buyers.
- He negotiated based on future growth potential, securing a valuation of 4x annual revenue, significantly higher than the industry norm.
Thomas remained involved as a consultant for two years, earning additional fees while mentoring the new management team.
Key takeaway: Positioning a firm for private equity investment requires demonstrating both profitability and scalability.
- Maria Gonzalez: A Family Legacy Done Right
Maria Gonzalez, based in Hobart, ran her family-owned accounting firm for decades. With her children interested in taking over, Maria wanted to ensure the transition didn’t disrupt the firm’s operations or her financial independence.
Here’s what she did:
- Maria arranged a formal valuation of the business, setting clear expectations for all parties.
- She implemented a structured payment plan, with her children paying $1 million over 10 years.
- Maria continued to mentor her successors for two years, ensuring a smooth transition.
By formalizing the arrangement, Maria secured her retirement while ensuring the firm stayed within the family.
Key takeaway: Family succession works best with clear financial terms and a structured transition plan.
Common Themes from Successful Sales
Across these five stories, several recurring themes emerge that any accounting firm owner should consider when planning a sale:
- Preparation is Critical
From streamlining operations to securing client contracts, advance planning can significantly increase a firm’s value and appeal to buyers. - Understand Your Priorities
Whether it’s maximizing financial returns, preserving a legacy, or ensuring employee welfare, your goals will dictate the best path forward. - Tailored Transitions Create Better Outcomes
Structured buyouts, profit-sharing agreements, and advisory roles can ease the shift for both sellers and buyers. - Know Your Ideal Buyer
Whether it’s a strategic buyer, private equity firm, employees, or family members, aligning with the right buyer ensures a smoother process.
Tips for Owners Planning to Sell Their Firm
If you’re considering selling your accounting firm, here are some practical steps to take:
- Start Early: Ideally, prepare 3–5 years in advance to ensure your firm is in the best possible shape for a sale.
- Diversify Your Client Base: Relying too heavily on a few clients can be a red flag for buyers.
- Focus on Recurring Revenue: Multi-year contracts or subscription-based services increase a firm’s attractiveness.
- Get a Professional Valuation: Knowing your firm’s worth helps you negotiate effectively.
- Engage Advisors: Work with experienced brokers, accountants, and lawyers to navigate the complexities of selling.
Selling an accounting firm is more than a financial transaction—it’s about achieving your vision for the future. Whether you’re planning a seamless family transition like Maria, preparing for a strategic merger like Lisa, or negotiating with private equity like Thomas, the path you choose should align with your goals and values.
By taking the time to prepare and understanding your options, you too can create a success story that reflects your hard work and aspirations. Which approach resonates most with your journey? Let us know!
5 Success Stories: Accounting Firm Owners Who Sold on Their Terms
Selling an accounting firm can be a pivotal moment in a business owner’s life. Whether the goal is to cash in on years of hard work, ensure a legacy, or maintain a firm’s culture, selling on your own terms is the dream. Below are five inspiring stories of accounting firm owners who navigated the complexities of selling, each with their unique approach and outcomes.
- Jane Roberts: Building Value Before the Sale
Jane Roberts, a trailblazing accountant in Brisbane, decided to sell her mid-sized firm to focus on her family. However, Jane didn’t rush into the process. She dedicated three years to preparing her firm for sale, knowing that a well-oiled machine fetches a higher valuation.
Jane’s key steps included:
- Streamlining operations by automating payroll and tax processing.
- Securing multi-year client contracts, ensuring recurring revenue.
- Enhancing profitability by reducing operating costs by 20%.
Her efforts paid off. Jane sold her firm for 3.2x annual revenue, a valuation above the industry standard of 2x-3x, to a strategic buyer. More importantly, she ensured the buyer retained all her staff and clients, preserving the culture she had built.
Key takeaway: Preparation is everything. By focusing on efficiency and client retention, Jane maximized the value of her firm while achieving a seamless transition.
- Kevin Miles: Selling to Employees Through ESOP
Kevin Miles ran a boutique CPA firm in Sydney and built a close-knit team over 20 years. When retirement beckoned, Kevin faced a dilemma: how to sell without disrupting the team dynamics? He opted for an Employee Stock Ownership Plan (ESOP).
Under this model:
- Kevin sold his shares to employees over five years.
- This allowed the team to become stakeholders, maintaining morale and continuity.
- Kevin received his payout in structured installments, ensuring financial stability during retirement.
The result? A smooth transition where 100% of staff were retained, and Kevin’s firm continued to thrive under the leadership of those who knew it best.
Key takeaway: Selling to employees is ideal for owners prioritizing their firm’s legacy and workplace culture.
- Lisa Huang: The Strategic Merger
Lisa Huang specialized in nonprofit accounting and operated in Melbourne. As her firm grew, Lisa saw an opportunity to merge with a larger entity to access resources and scale her services nationally. She chose a strategic merger over a sale.
Highlights of the merger:
- Lisa negotiated a profit-sharing agreement, securing her financial future.
- She retained a board position, giving her influence in the merged entity.
- Her clients benefited from enhanced services, and her employees enjoyed more career opportunities.
Post-merger, Lisa’s revenue grew by 25% annually, far exceeding the 10% growth she achieved independently.
Key takeaway: Mergers can amplify growth while allowing owners to retain a leadership role in the new entity.
- Thomas Grant: Selling to Private Equity
Thomas Grant owned a multi-location accounting firm across Perth and Adelaide. With a firm generating $4 million in annual revenue and profit margins exceeding 25%, Thomas attracted the interest of private equity investors.
Key moments in the deal:
- Thomas negotiated based on growth potential, not just current earnings.
- He highlighted the scalability of his cloud-based bookkeeping platform.
- The sale price? A whopping 4x annual revenue, significantly above the industry norm.
Post-sale, Thomas stayed on as a consultant for two years, earning an additional advisory fee while mentoring the new management team.
Key takeaway: Private equity buyers value firms with scalable operations and growth potential. Positioning the business strategically can command premium valuations.
- Maria Gonzalez: Passing the Torch to Family
Maria Gonzalez had run a family-owned accounting firm in Hobart for decades. Her children were interested in continuing the legacy, but Maria wanted to avoid the pitfalls of informal transitions. Instead, she structured the sale professionally.
Here’s how she did it:
- Maria and her children agreed on a valuation based on industry standards.
- The firm’s ownership transitioned through a structured payment plan of $1 million over 10 years.
- Maria remained on the board for two years, mentoring her successors.
By formalizing the arrangement, Maria secured her retirement while ensuring the firm stayed within the family.
Key takeaway: A well-planned family transition avoids conflicts and ensures both financial independence and business continuity.
Lessons Learned: Selling on Your Terms
These success stories highlight the diverse paths to selling an accounting firm. While each owner’s journey was unique, common themes emerged:
- Preparation Pays Off: Like Jane, taking the time to streamline operations and build value ensures a better sale price.
- Legacy Matters: Whether through ESOPs, mergers, or family transitions, these owners prioritized preserving their firm’s culture and legacy.
- Know Your Ideal Buyer: Understanding whether a strategic buyer, private equity firm, or family member aligns with your goals can simplify negotiations.
- Tailor the Transition: Structured deals, advisory roles, and profit-sharing agreements allowed owners to stay involved post-sale while securing their financial futures.
Tips for Accounting Firm Owners Planning a Sale
- Start Early: Begin preparing your firm 3-5 years before you plan to sell.
- Get a Professional Valuation: Understanding your firm’s worth can help you negotiate effectively.
- Diversify Your Client Base: Relying on one or two large clients can make your firm less attractive to buyers.
- Secure Recurring Revenue: Multi-year contracts increase buyer confidence.
- Work with Advisors: Engage accountants, lawyers, and brokers specializing in business sales to ensure a smooth process.
Selling your accounting firm on your terms isn’t just about securing the highest price. It’s about preserving the legacy you’ve built, ensuring continuity for clients and employees, and setting yourself up for the next chapter of your life. Whether it’s transitioning to family, selling to employees, merging strategically, or negotiating with private equity, there’s no one-size-fits-all approach.
As these stories show, with the right strategy, you can write your own success story—just like Jane, Kevin, Lisa, Thomas, and Maria did. What will your story be? Let us know in the comments!