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What to Know Before Buying an Accounting Practice in Melbourne (2025 Update)

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Here is Blog 2 – Expanded for 2025 in Australian English:

Buying an Accounting Practice in Melbourne (2025 Edition)

A Step-by-Step Guide for Smart Practice Acquisition in Australia’s Most Competitive Market

Melbourne’s accounting industry remains one of the most competitive – and promising – markets in Australia. Whether you’re a sole practitioner, a growing firm, or a buyer exploring strategic acquisition opportunities, buying an accounting practice in Melbourne in 2025 can be a highly profitable move — but only if you approach it with the right plan.

This guide breaks down how to buy an accounting practice in Victoria’s capital while maximising value and avoiding the most common pitfalls buyers face in today’s regulatory and market environment.

As of mid-2025, Melbourne is home to over 25,000 registered tax agents and accounting professionals, many of whom are nearing retirement or looking to merge to reduce operational overheads. Thanks to:

  • Growth in service-based SMEs across metro and suburban regions,
  • ATO digitalisation pushing demand for expert compliance guidance,
  • A wave of baby boomer practice exits, and
  • Increased remote-first operations, making geography less of a barrier,

Melbourne has become a prime location for buying a bookkeeping or accounting practice — especially in areas like Richmond, Dandenong, and Geelong, where succession planning is common.

Step 1: Define Your Ideal Practice Profile

Not all firms for sale are worth buying.

To avoid wasted time and money, first define your ideal practice profile. Consider:

  • 💰 Annual recurring fees – Most buyers target $200k–$1.5m in gross fees.
  • 📍 Location – Local suburban firms may offer greater value than CBD ones.
  • 🧾 Client mix – Do you want high-volume ITRs or more advisory-heavy clients?
  • 🧑‍🤝‍🧑 Team structure – Are you acquiring a solo operator, or a full team?
  • ⚙️ Tech stack – Look for cloud-native firms (e.g., Xero, FYI Docs) for faster integration.

A buyer who knows what they want is more likely to find the right match and close faster.

Step 2: Know Where to Find Listings (and Off-Market Deals)

Many quality accounting practices never hit public listing sites. To find real opportunities:

  • Use brokers specialising in accounting practices, like Rob Knights, Succession Plus, or Practice Sales Search.
  • Join industry Facebook groups, LinkedIn circles, and networking events.
  • Partner with growth advisors or exit strategists (like SellMyFirm) who work directly with sellers looking for a quiet, values-aligned deal.
  • Monitor sites like Seek Business and Practice4Sale, but expect competition.

Off-market deals often give buyers more time to conduct due diligence and negotiate favourable terms.

Step 3: Conduct Rigorous Due Diligence

Due diligence in 2025 means more than reviewing financial statements.

Here’s what to dig into:

  • 🔢 Revenue stability – Check for fee concentration (no one client should represent over 15%).
  • 🧾 ATO compliance history – Red flags around audit risks, overdue lodgements.
  • 👥 Client retention insights – Ask about drop-off rates post-EOFY and post-partner departure.
  • 🛠️ Technology ecosystem – Are systems modern, secure, and compliant?
  • 📈 Staff contracts – Are key staff staying? Are their salaries market-aligned?
  • 🧾 Vendor systems & subscriptions – Will these be transferred? What are the costs?

It’s best to work with a commercial solicitor and experienced practice valuer before signing anything.

Step 4: Structure the Deal to Your Advantage

In 2025, most accounting practice acquisitions are structured in one of three ways:

  1. Outright Purchase (All Cash) – Cleanest, but usually more expensive.
  2. Earn-Out (e.g. 70% upfront, 30% over 12 months) – Motivates seller to assist with transition.
  3. Merge-then-Acquire – A trial partnership phase leading to full acquisition.

Each structure has tax, cash flow, and risk implications. Be sure your agreement includes:

  • Retention clauses
  • Client handover responsibilities
  • Staff transition support
  • Timeframe for seller involvement

💼 Tip: Consider seller-financed deals or vendor terms to reduce upfront capital strain.

Step 5: Manage Post-Acquisition Integration

The first 3–6 months post-acquisition are crucial. Your success depends on:

  • Client communication – Reassure them nothing’s changing (yet). Then overdeliver.
  • Staff transition – Be visible, supportive, and make improvements slowly.
  • System alignment – Migrate systems, tech, and templates gradually to reduce shock.
  • Rebrand (optional) – Consider a fresh, professional rebrand if the acquired firm needs reputational uplift.

Buyers who offer continuity + improvements often retain over 90% of clients post-acquisition.

Common Mistakes to Avoid in 2025

❌ Relying only on brokers — most good deals are found through relationships.

❌ Overpaying based on gross fees — net profit, retention risk, and systems matter more.

❌ Ignoring tech incompatibilities — merging cloud vs desktop firms can be painful.

❌ Not having an exit plan — what happens if things don’t work out?

Final Thoughts

Buying an accounting practice in Melbourne can fast-track your growth, give you immediate cash flow, and position your firm for long-term success.

But it’s not just a numbers game — cultural fit, support systems, and clear expectations are what make deals last.

If you’re looking to buy a bookkeeping or accounting firm quietly (without competition), consider working with a strategic matchmaker who can connect you with aligned sellers in confidence.

🔗 Helpful Link: Buying a business — business.gov.au (opens in new tab) – Official government resource for business acquisitions in Australia.