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Accounting Practices (inc Fee Parcels) Back to our services

Accounting Practices/Fee Parcels Business

There is a steady demand for accounting practice/fee parcels.  Typical buyers are:-

  • Qualified professionals with a few years of working experience looking to own their own accounting practice.
  • Established accounting practice looking to expand.
  • Established financial planning oriented practice.


What is a typical accounting practice worth?

Note:  The information provided is general in nature and is presented as a guide only as every practice has its own unique qualities. It does not take into account the specific characteristics of a particular practice or the market conditions that exist at the time of transaction.

Characteristics that determines the value:

  • Revenue compositions
  • Core service competencies
  • Location of practice
  • Demographic profile of client base
  • Skills of existing employees
  • Quality of office setup

Smaller Practices (less then $1 million in revenue)
For smaller practices and fee parcels, the values are typically expressed as a multiple of gross fees of the practices rather than the net profit.  Range is between 70 cents to 110 cents in the dollar.

Larger Practices (more then $1m in revenue)
The Return on Investment (ROI) method is usually used for larger practices (turnover of above $1 million), where the revenues are generated from a more diverse range of services.

If the ROI method is used to value “small” practices, the profit is usually based on a “working owner basis”, where a working owner’s wage is included as part of the profit for the business.

 

 
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