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Written for accountants
Buying an accounting practice, without buying its problems.
Free 4-page summary, no email required
Three things decide how a practice purchase ends: the retention clause behind the headline multiple, the quality of the due diligence before the heads of agreement, and how the funding is structured against the fee base. All three are on this page, and in a 4-page summary you can hand to your solicitor.
Subject to lender criteria, security position and eligibility. Figures on this page reviewed quarterly, last reviewed September 2026. Next review: December 2026.
At no cost, we review your position and discuss how we will approach funding your deal. No lender sees anything until you say so.
30 minutes with Priyank, former bank commercial credit assessor, Master of Commerce (Professional Accounting).
Download the free summary (PDF)
4 pages. No email required. Direct download.
On this page
The process
Seven stages, and the gate on each.
A practice purchase fails at the gate you skipped, not the one you were standing at. Don’t move past a stage until its gate is closed.
| Stage | Don’t move past it until |
|---|---|
| 1 · Can you complete? | The acquiring entity can hold the registrations (TPB sufficient number, fit and proper, PI cover), and the funding envelope is budgeted, not guessed. |
| 2 · Fee base & offer | You’ve analysed the register client by client, rebuilt the earnings yourself, and settled the retention mechanism before the heads of agreement. |
| 3 · Verify everything | Five streams complete (fee base, regulatory, people, systems, premises) with no unresolved deal-killer. |
| 4 · The contract | Client consent letter agreed, fee register warranted, restraint and handover written as clauses. There is no cooling-off period. |
| 5 · The funding | Unconditional approval, on a clause drafted around the funding pathway, not copied from the agent’s template. |
| 6 · Settlement | Every clock landed: registration, finance, consent letter, staff offers, data migration, WIP and debtors reconciled. |
| 7 · First 100 days | Every top-tier client met inside 30 days, whole book contacted by 90, retention tracked weekly against the schedule. |
The register
The 12 deal-killers.
One is a negotiation. Three is a walk. Good practices are scarce, and that scarcity is exactly how buyers talk themselves past findings they’ve already made.
Funding it is not one product: the five kinds of business loan price differently →
1 · Fee income that won’t reconcile. Reported fees, the bank and the practice management system disagree.
2 · Recurring fees that aren’t recurring. Project work counted into a base carrying a recurring multiple.
3 · Goodwill personal to the principal. Clients ask for them by name; relationships don’t transfer with a balance sheet.
4 · A registration that can’t be replaced. SMSF audit or licensed-advice fees resting on a departing individual.
5 · Client concentration above ~40%. Top five carrying the book, often related to the vendor, rarely contracted.
6 · A retention clause with vague terms. “Retained” undefined, no collar, no conduct standards.
7 · An AML/CTF position that doesn’t exist. Designated services provided, no enrolment, no programme, deadlines already passed.
8 · Regulatory or professional history. TPB conditions, quality review findings, a pattern of PI notifications.
9 · Technical positions you wouldn’t have taken. Found after settlement, in files you now own.
10 · Lock-up that hides a service problem. Long WIP and debtor days usually mean work is late, and late work is why clients leave.
11 · A platform that won’t migrate. Client-owned subscriptions walk out individually; conversion exceeds the discount.
12 · No restraint, no handover. Goodwill you paid for, quietly returning to its original owner.
The price
What a practice is worth, and the clause that decides it.
Which basis applies isn’t the dollar band. It’s who does the work. And the headline multiple is meaningless until you know how it interacts with the retention clause: a high multiple with a weak clawback can cost more than a low multiple with a tight one. Vendors quote the multiple. Buyers negotiate the clause.
| Basis | Observed range | Applies when |
|---|---|---|
| Gross recurring fees | 0.8×–1.4× | The principal still prepares files: priced on fees, because the earnings are personal |
| EBIT (larger firms) | 3×–5× | Staff deliver and the principal manages: priced on earnings, because they survive the handover |
Valuation ranges are market observations current at September 2026, not valuations, and vary by practice. General information only. Obtain advice from a qualified solicitor and your professional body before acting.
New this cycle
AML/CTF Tranche 2. Most vendors haven’t been asked.
Tranche 2 commenced on 1 July 2026. Accountants providing designated services are now reporting entities, and AUSTRAC’s enrolment and compliance-officer deadlines of 29 July 2026 are behind us. A practice that provides designated services and hasn’t enrolled is already outside its obligations, and you’d be acquiring a client base with no completed customer due diligence behind it. Real remediation, real timeline. It belongs in the price, not in your first year.
Five questions settle it before the price is discussed: the practice’s AUSTRAC enrolment number and date; the name of the AML/CTF compliance officer; whether an AML/CTF program has been adopted and risk-assessed; how many existing clients have completed customer due diligence and how many are outstanding; and whether any suspicious matter reports have been lodged. A vendor who can answer all five in writing has done the work. A vendor who cannot is selling you the work.
The funding
The fee base is the asset. We present it that way.
Funding a practice acquisition is decided on the quality of the submission, not just the quality of the deal. Send a complete pack and within 24 hours you have our answer: fundable, not fundable, or what’s missing.
Maximise the funding
The fee base presented as the asset it is, to the desks that actually write goodwill-backed practice lending, rather than the ones that discount it.
Put the case to the decision-maker
Where the deal warrants it, the case goes directly to the credit decision-maker, in the language of that lender’s own policy. The decision is theirs; the argument is ours.
Structure the transaction
How the facility sits against your buying entity, the price allocation and the deferred consideration, flagged for you and your adviser before it is locked.
Hold the timeline
Registration, consent and settlement clocks mapped backwards, so the finance clause is achievable rather than hopeful.
The deposit question, how much cash a structured file actually needs, is answered with full workings in the business deposit guide.
Indicative only. Any pricing, gearing or approval is subject to lender assessment and a full application. Policy exceptions are at the lender’s discretion.
Take it with you
The 4-page summary is at no cost. The 22-page guide is yours for the asking.
The 4-page summary
The seven stages with their gates, the preliminary pack, the before-you-look / offer / sign checklists, and the 12 deal-killers with a scoring register. Written for accountants, so it doesn’t explain your profession back to you.
Direct download. No email required.
The complete guide: 22 pages
The rest of the instruments: the fee register analysis grid, the retention term sheet covering all four variables, the full Round 2 due diligence request, the settlement backwards planner, and the funding chapter. Why practices gear differently from every other acquisition.
Request it via the contact page → Or ask on WhatsApp →
Name, email and mobile, and it’s yours.
Straight answers
Fair questions.
How much is an accounting practice worth in Australia?
Published market observation as at August 2026: roughly 0.8×–1.4× gross recurring fees for smaller books, or 3×–5× EBIT for larger firms. Which basis applies depends on who does the work. Market observation, not a valuation. Obtain your own advice.
What decides the price more than the headline multiple?
When buying an accounting practice in Australia, the retention clause decides the price more than the multiple. A high multiple with a weak clawback can cost more than a low multiple with a tight one. Vendors quote the multiple; buyers negotiate the clause.
What deposit do I need to buy an accounting practice?
An accounting practice’s recurring fee base is exactly the kind of asset goodwill-backed practice lending desks lend against. Up to 100% on business and commercial transactions; on 8 out of 10, 95% or above, subject to lender criteria, security position and eligibility. The workings are in the deposit guide.
Does AML/CTF Tranche 2 affect buying an accounting practice?
Yes. Tranche 2 commenced on 1 July 2026 and AUSTRAC’s enrolment and compliance-officer deadlines of 29 July 2026 have passed. A practice providing designated services that hasn’t enrolled is already outside its obligations. You’d be acquiring a client base with no completed customer due diligence. It belongs in the price.
Which documents should I request first?
Five, in one written request the day the confidentiality agreement is signed: the fee register by client, the financials, the lease in full, the licensing position (TPB, professional body, PI, AUSTRAC, ASIC), and the reason for sale in writing. Any of the five coming back thin, late or heavily qualified is itself a finding.
Is the 4-page summary really at no cost?
Yes. Prevail Finance’s 4-page summary on buying an accounting practice is a direct download, no email required. The complete 22-page guide is available on request through the contact page or WhatsApp.
Next step
Talk to us before you sign.
A finance clause drafted around the funding pathway, and a funding pathway scoped for this specific practice. Within 24 hours you have our answer: fundable, not fundable, or what’s missing. Once you accept our quote, your written Action Plan follows within one business day.
30 minutes with Priyank, at no cost. We review your position and discuss how we will approach funding your deal. No lender sees anything until you say so.