Getting Your Practice Sale Ready: A Step-by-Step Guide
Selling an accounting firm is a defining milestone—whether you're retiring, exploring new ventures, or merging with a larger practice. It’s more than a transaction; it’s a strategic transition that calls for clarity, preparation, and foresight.
From financial housekeeping to preserving client trust, every detail matters. Prospective buyers will expect a crystal-clear snapshot of your firm’s financial health and operational efficiency. Think of it as a spring clean before due diligence begins—polishing every corner to showcase your practice at its best.
Here’s your comprehensive checklist to help you prepare with confidence and maximise value.
🎯 Define Your Why and Your Post-Sale Vision
Before anything else, get crystal clear on why you're selling and what life looks like after the sale. This clarity will guide your decisions, keep you focused, and help potential buyers understand your motivations. It’s not just about the transaction—it’s about your future.
📁 Organise Your Client Base Strategically
Present your client portfolio in the best possible light. Group related entities and individuals under umbrella relationships to showcase the full scope of your client connections. A well-structured client base can significantly enhance perceived value and boost your sale price.
💸 Review and Refine Billing Practices
If you're still billing annually, consider switching to invoicing after each BAS or job milestone. This improves cash flow for both you and the buyer, and demonstrates a modern, client-friendly approach to billing.
🧾 Tidy Up Outstanding Debts
Buyers want a clean financial slate. Minimise aged debtors—especially those lingering in the 90-day category—to present a healthy financial outlook and reduce risk.
🔄 Keep Work in Progress (WIP) Up to Date
WIP is rarely transferred in a sale, so outdated records can work against you. Keeping WIP current not only reflects well on your workflow management but also helps you wrap up loose ends before handing over the reins.
💼 Align Your Charge Rates with Market Value
Undervalued rates can be a red flag. Review your pricing structure and adjust annually to stay competitive. Buyers are looking for practices that reflect fair market value—not bargain-bin pricing.
☁️ Upgrade Your Technology
Still using legacy systems? Now’s the time to migrate to cloud-based software. It adds operational efficiency, appeals to tech-savvy buyers, and can even increase your sale price.
🏢 Address Premises Considerations
If you're leasing, avoid locking into long-term commitments that might deter buyers. If you own the premises, get a current market appraisal to ensure you're offering fair rent terms.
👥 Evaluate Client Demographics and Succession Plans
Take a close look at your client base—especially those aged 60 and over. Are succession plans in place? Buyers will want assurance that your client relationships are sustainable.
📊 Update Your Financials
Accurate, up-to-date financials are non-negotiable. They’re the foundation of your practice’s valuation and the first thing buyers will scrutinise. Make sure everything is in order.
🛡️ Secure Staff Contracts
Protect your client relationships by ensuring staff are on restrictive employment contracts. And while transparency is important, we recommend holding off on notifying staff about a potential sale until you’ve spoken with your Quinn broker.
The Bottom Line
Preparing your practice for sale is both a financial and emotional undertaking. By tightening your financials and cultivating strong, transferable client relationships, you not only increase your firm’s attractiveness to buyers but also preserve the legacy you’ve built.
Would you like insights on how to attract the right buyers?
Contact Quinn & Associates for a confidential discussion.
You can also schedule a private Zoom meeting at www.quinnassoc.com.au/meeting
Quinn & Associates
Tel: 1300 784 888
Zoom: To Book A Zoom Meeting
John McCulloch:- john.mcculloch@quinnassoc.com.au
Chris Clifford:- chris.clifford@quinnassoc.com.au
