How to Get the Best Value for Your Accounting Firm Without a Broker

Selling an accounting firm is a significant milestone, whether you’re preparing for retirement, seeking new opportunities, or transitioning to a different career. Traditionally, business brokers have played a central role in facilitating such transactions, but they often charge hefty fees—sometimes 10% or more of the sale price—which can significantly cut into your profits.

In this guide, we’ll explore how you can maximize the value of your accounting firm without relying on a broker. By following these strategies, you can keep more of your hard-earned money while ensuring a smooth and successful sale.

Why Skip the Broker?

Brokers often promise to streamline the sale process, but the cost of their services can outweigh the benefits. Here’s why many accounting practice owners are choosing to go broker-free:

Save on Fees:
- Brokers typically charge commissions ranging from 5% to 12% of the sale price.
- For a $1,000,000 firm, this could mean $50,000–$120,000 in fees.
Retain Control:
- Selling directly allows you to manage negotiations, ensuring the deal aligns with your goals.
- Brokers often prioritize speed over securing the best deal.
Confidentiality:
- Marketing your firm discreetly ensures employees, clients, and competitors remain unaware until the time is right.

By avoiding a broker, you can take control of the process while maximizing your financial outcome.

Step 1: Understand Your Firm’s Value

Before you begin the sales process, it’s essential to determine your firm’s value. This sets the foundation for a successful sale and ensures you attract serious buyers.

Valuation Methods

Revenue Multiples:
- Firms are typically valued at 0.8x to 1.5x their annual gross revenue.
- Higher multiples are awarded to firms with strong recurring revenue and loyal client bases.
Profit Multiples (EBITDA):
- EBITDA multiples typically range from 3x to 5x.
- A firm with $200,000 in EBITDA could be worth between $600,000 and $1,000,000.
Market Comparables:
- Look at recent sales of similar firms in your area for a benchmark.

Metric	Example Value	Multiple	Estimated Value
Annual Gross Revenue	$750,000	1.2x	$900,000
EBITDA	$150,000	4x	$600,000

Pro Tip: Use a free valuation tool, like the one offered by Acquire My Firm, to get an accurate estimate.

Step 2: Highlight Key Value Drivers

Buyers look for specific attributes that reduce risk and enhance profitability. By showcasing these value drivers, you can command a higher price:

1. Recurring Revenue

Reliable income streams (e.g., bookkeeping and payroll) are more valuable than one-off services.
Target: Recurring revenue should account for at least 50% of your total revenue.

2. Client Retention

High retention rates and long-term client relationships are strong selling points.
Example: Firms with an 80%+ retention rate can command premium valuations.

3. Growth Potential

Buyers are attracted to firms with untapped opportunities for expansion, such as:
- Adding new service lines (e.g., financial advisory).
- Expanding into new geographic areas or industries.

4. Efficient Operations

Streamlined workflows and the use of automation tools (e.g., Xero, QuickBooks) make a firm more appealing.
Highlight high staff utilization rates and low overhead costs.

Step 3: Prepare Your Firm for Sale

A well-prepared firm not only attracts more buyers but also ensures you achieve the best possible value. Here’s how to get ready:

Organize Financials

Prepare 2–3 years of financial statements, including profit and loss statements, balance sheets, and tax returns.
Showcase trends in revenue growth, profitability, and recurring income.

Streamline Operations

Address inefficiencies in workflows and ensure all processes are documented.
Resolve outstanding issues, such as overdue accounts or pending legal matters.

Clean Up Client Data

Ensure your client list is accurate, up-to-date, and highlights long-term contracts.

Showcase Technology

Emphasize your use of cloud-based tools, client portals, or automation software.

Preparation Task	Action
Financial Organization	Update and prepare financial records
Workflow Optimization	Streamline processes for efficiency
Client List Cleanup	Highlight loyal and contracted clients
Technology Showcase	Detail software investments

Step 4: Market Your Firm Discreetly

Marketing your firm effectively—without a broker—requires a targeted approach to attract the right buyers while maintaining confidentiality.

Targeted Marketing Strategies

Leverage Professional Networks:
- Announce your firm’s availability discreetly to trusted industry contacts.
Online Marketplaces:
- List your firm on niche business-for-sale platforms.
Social Media:
- Use LinkedIn to connect with potential buyers or larger firms looking to expand.
Direct Outreach:
- Reach out to larger accounting practices in your area that may be interested in acquiring your firm.

Pro Tip: Create a brief, anonymous profile for marketing that highlights key metrics (e.g., “Accounting firm with $600K in annual revenue and 75% recurring income available for sale in Sydney”).

Step 5: Negotiate With Confidence

Without a broker, you’ll handle negotiations directly. Here’s how to ensure success:

Know Your Worth

Stick to your valuation but remain open to reasonable adjustments.

Prepare for Buyer Concerns

Address questions about client retention, profitability, or transition plans.
Offer assurances, such as support during the handover period.

Use a Lawyer

Engage a legal professional to review contracts and draft the sale agreement.

Step 6: Offer a Smooth Transition

Buyers value a seamless handover. Providing support during the transition can justify a higher price and ensure client retention.

Transition Plan Essentials

Document workflows and processes.
Assist with client introductions.
Offer a set period of advisory support (e.g., 3–6 months).

Case Study: A Broker-Free Success Story

Background:
Jane, a Melbourne-based accountant, was ready to sell her firm valued at $700,000. Instead of hiring a broker, she used Acquire My Firm to manage the process herself. By following these strategies, Jane:

Saved $70,000 in broker fees.
Attracted three competitive offers.
Closed the deal within 60 days.

Selling Method	Broker Fees	Net Earnings
Using a Broker	$70,000	$630,000
Direct Sale	$0	$700,000

Conclusion: Keep More of Your Profits

Selling your accounting firm without a broker is not only possible—it’s often the best way to maximize your value. By understanding your firm’s worth, preparing effectively, and marketing strategically, you can achieve a successful sale while saving thousands in fees.

Ready to start your broker-free journey? Acquire My Firm offers free valuation tools and expert guidance to help you succeed.