Accounting Practices

Buy Sell Merge Accounting Practices

As 2015 draws near to a close and the start of the new financial year is  fast approaching, I would like to give you an insight on what we at Accounting Practices have come across when it comes to BUY/SELL/MERGE & succession planning of Accounting Practices.


If we take into account the many Practices we have sold nationwide, not all firms are the same, two things spring to mind and that is “systems and culture values”


Some of the issues we have come across is the retention sum that is left in, at the request of the buyer to ensure clients do not drop off after a certain period etc


(General rule of thumb would normally be around 10-20% of the purchase price that the buyer would want to hold back)


Believe me, this can be a sensitive subject alongside Price when dealing with both vendor and buyer.


So for arguments sake the remaining balance is owed to the vendor from the buyer if the revenue on what was originally paid for is reached or adjusted ( down) or  vice versa.


In our dealings with past sales, various issues that could restrict the buyer to pay the balance to the vendor, some reasons are listed below:

  1. Refusal of the buyer to pay
  2. Guaranteed revenue not reached
  3. Financial implications from the buyers end during the takeover


However this can easily be avoided by taking small steps from the buyers end to rectify this mishap.


When Purchasers acquire the practice they need to realize that it is not an employment contract where the practice and fees are guaranteed!!


You need to still if not better the systems originally put in place by previous vendors ( i.e.) sales focused, marketing, relationship building, via your DD source and focus on key clients, source key staff who can run the practice and keep them on side!


Here are some listings we have on our books:



  1. Fees $1000,000
  2. Sole Director
  3. 5 Staff, looking for a mature accountant (50-60yrs
  4. Preference is someone currently working in either a CA or TINZ practice


  1. Small Fee base with Sole Director wanting to sell a block ($100k)
  2. Compliance work
  3. Would suit a young accountant looking to leverage from a fee base
  4. May suit a Practice in the local area looking to top up


  1. Fees $500,000
  2. Established firm over 20 years
  3. Sole Director 
  4. Minimal overheads


  1. $750,000
  2. Small Practice with 4 staff
  3. Partner to exit ASAP


  1. $400,000
  2. Small Practice with 2 staff
  3. Partner to exit ASAP
  4. Over 20 years in Practice


As you can read already, it is not just about paying the highest price!!


If you are interested to know more about the BUY/SELL/MERGE then call/contact us today for a FREE no obligations and absolute confidential chat.



Riki Sila

022 0432 880 or

Leading Brokers when it comes to BUY/SELL /MERGE of Accounting Practices