Looking to Buy or Sell an Accounting Practice in Melbourne? Here’s What You Should Know
Melbourne’s competitive accounting industry presents excellent opportunities for firm owners looking to exit or expand. Whether you’re selling your accounting practice or looking to acquire one, it’s essential to understand the process, pricing factors, and local market trends.
Why Melbourne Is a Hotspot for Firm Sales
As one of Australia’s largest financial hubs, Melbourne offers a dense client base of small-to-medium businesses and professionals. This makes accounting practices in the region highly sought after by both individual practitioners and larger firms looking to grow through acquisition or merger.
Steps to Selling an Accounting Practice
- Get a professional valuation: Understand your firm’s worth based on revenue, profit margins, client types, and recurring income.
- Prepare your financials: Buyers will need clean, accurate financial statements for the past 2–3 years.
- Decide on your exit plan: Will you stay on for a transition period? Will staff stay?
- List and connect with serious buyers: Use a platform like Sell My Firm to connect directly without broker fees.
What Buyers Should Look For
- Strong recurring revenue (e.g., BAS, tax, or bookkeeping packages)
- Client concentration and retention rates
- Systemised processes and cloud-based tech adoption
- Staff quality and transition support
Valuation Ranges in the Melbourne Market
In Melbourne, accounting practices typically sell for 100%–120% of annual gross fees. Premiums apply for niche specialisations, high retention, and modern operations. Regional and suburban firms may price slightly lower but offer loyal client bases.
Common Deal Structures
Most firm acquisitions involve staged payments (e.g., 70% upfront, 30% over 12 months based on retention). Sellers may be asked to assist during handover, and some buyers prefer a full merger with shared branding.
Regulatory Considerations
Ensure all tax agent registrations and ASIC details are updated post-sale. You may also need to notify professional bodies (CPA, CA ANZ) depending on your structure.
Helpful Resource
To learn more about preparing a business for sale, visit the Victorian Government’s business guide.