Buyer Competition Continues to Drive Positive Outcomes for Sellers

 - The Latest Market Data For Accounting Practice Sales 

Published May 2025

DMY's latest six-monthly release of Market Data and Insights for accounting practice sales is below. Our data set includes thirty practice sales^# over the last twelve months as well as the key trends from our last eight Market Data releases back to 2021.

There are no shortage of competing opinions when it comes to the price an accounting or bookkeeping firm can sell for, how much demand there is, and what is "at market" for key commercial terms such as retention. At DMY we prefer to let the facts and the data speak for themselves.

If you are serious about buying or selling an accounting or bookkeeping practice, knowledge is power and key to helping you compete and win. Enjoy our latest market data and insights and let us know what you think. 

^# The majority of these practice sales are pure accounting practices. They also include accounting practices with bookkeeping, finance function and bookkeeping practices, and specialist audit.

Key Takeouts

1. Practices are selling for an average of 116 cents in the dollar (metro) and 109 cents (regional)

• All bar two of our thirty recent practice sales sold for higher than 100 cents in the dollar.
• For metro practices the average selling price of 116 cents in the dollar is three cents higher than November 2024 (113 cents).
• Regional practices continue to show healthy results and are proving attractive to both regional and metro buyers.
• Ten practices sold for 120 cents in the dollar or higher, with two at 135 cents. Both were high quality, in excellent locations and of strategic value to the buyers. We expect more outcomes like this over the next 12 -24 months.
• There is a material difference between the average sale multiple of practices with fees > $1 million (120 cents) v practices with fees < $1 million (113 cents). This does not surprise us as larger buyers typically have the scale, and are better placed to capture revenue / cost synergy opportunities, to generate healthy returns at these higher multiples.
• Sale multiples range from 95 to 135 cents. This highlights the importance for sellers of having their practice independently assessed using a robust methodology to ensure they get the right price for their practice.
• Other factors including client mix, profitability, location and/or ability to relocate, and operational efficiency continue to drive value up or down as well as the specific context of individual buyers.
• For larger or very profitable practices it can be also be appropriate to sell based on a multiple of maintainable earnings. 

2. 67% of Practices are selling in less than 90 days

• This is up from 60% in our last release in November 2024.
• Time measured is from listing date through to execution of a Heads of Agreement with the preferred buyer.
• Ninety days is realistic to achieve the sale of a good quality metro practice with fees < $2 million, assuming a well-run sale process and the guidance of expert support to navigate through any deal complexities that may arise.
• Three of the five Regional practices in our cohort achieved sales in less than 120 days. 
• Not every sale goes smoothly. DMY's longest sale took over 12 months. Our client had one false start with a buyer but then we regrouped, went back out to market and identified a buyer with a strong fit and achieved a successful outcome.

3. Metro practices attract an average of 80^ interested buyers per listing 

• This is marginally down on six months ago (83 buyers) but remains materially higher than pre-COVID (40-50 buyers). 
• Regional practices continue to attract healthy levels of interest with an average of thirty nine buyers per listing, a healthy pool from which to secure the right buyer with a strong cultural fit.
• We see no sign of this high demand changing in the short term. Sellers can be confident of an attractive volume, quality and diversity of buyers including individuals, small practices and more established, larger players.
• We are also seeing more buyers looking to expand interstate which increases the options for sellers, particularly those who are metro-based and large enough to be a "platform" first acquisition for an interstate buyer.
• Given the importance of cultural fit, there is no dominance in the market by any individual buyer. Of DMY's last 80 practice sales, there have been over 70 different successful buyers reflecting the strength of DMY's network.

^ 80 interested parties does not mean 80 people accessing confidential information or even knowing the identity of the seller.  Nor does it mean the seller having to waste time meeting lots of people who are not suitable. DMY runs a very structured sale process with all buyers who want to meet the seller being carefully vetted. A seller typically meets between 4-8 interested parties in a DMY-run sale process.

4.  17% of the sale price, on average, is held in retention

• This is one percentage point higher than six months ago (16%).
• While the range is 0% to 40%, twenty two of the practice sales (73%) have retentions in a narrow range of 10 - 20%.
• Three practices had retentions <10%. One had the seller accepting a lower price to have 100% of the proceeds paid at settlement, while buyer competition was a factor in the others.
• Two practices had retentions of 40% reflecting financial concentration risk in the client base with a few large clients accounting for a significant percentage of the total fees.
• Sellers and buyers should focus on the specific risk profile of the fees being sold/acquired, the transition role of the Vendor in supporting client retention, and other specific factors that may impact client retention either positive or negative.
  • Pragmatic sellers with higher risk client portfolios need to be flexible (as our two clients were above) while sellers with less risky books, or mitigating factors, can rightly secure a lower retention.
  • Conversely, smart buyers, once they identify a strong cultural fit with a seller and a reduced transition risk, use retention as an effective negotiating tool to differentiate from the competition.
• One year continues to be the default period for retention with only two practices having a retention of two years. This has been consistent for the last four Market Data releases and buyers who insist on a high, multi-year retention without supporting data and logic will miss out.

Trend Information 2021 - 2025

Finding 1: Since 2021 the average sale price multiple for metro firms has trended upwards in a narrow range of 109 - 116 cents in the dollar. 

Note: Practice Sales are ranked in ascending order in each graph ie Listing #1 above is not necessarily the same as Listing  #1 in other depictions.

Finding 2: Average buyer numbers per metro listing have remained high with small movements around an average of 77

Note:Practice Sales are ranked in ascending order in each graph ie Listing #1 above is not necessarily the same as Listing #1 in other depictions.

Finding 3: There has been an incremental increase over the last two and a half years albeit that the average level has remained broadly consistent around an average of 15% over the entire period. 

Note:Practice Sales are ranked in ascending order in each graph ie Listing #1 above is not necessarily the same as Listing #1 in other depictions.
Only 29 listings are featured as one was subject to an alternative structure.

The Wrap (and More Data)

For sellers… key indicators around buyer demand, selling prices and time to sell remain positive. We see no sign of this changing over the next 12-24 months. If you have a good quality practice in an attractive location (or it is easily relocatable as an increasing number are) you should be confident of achieving a successful sale within 90 days. This doesn't mean a smooth sale and a positive commercial outcome are a foregone conclusion. The broad range of selling prices and retention levels shows that you cannot rely on "averages" to determine the right commercial outcome, and each practice should be assessed on its own merits. The sale process also still needs to be carefully navigated and the right buyer secured who will be the best fit for you, your clients and your team. Buyers have choice too and no buyer will want to work with a seller who is difficult to work with, inflexible, or has unreasonable expectations. 

For buyers…competition remains intense and patience is key. It is positive to see that many buyers have now moved away from outdated notions of "everything sells dollar for dollar" and have a good appreciation of market prices and retention levels. Being competitive commercially, though, is not enough to guarantee success. The seller is not just looking for a dollar outcome. They are looking to secure the right buyer with their legacy and peace of mind intact. If you are a great fit, then be attuned to the seller’s needs and flexible in your approach if you want to secure that prized acquisition in the face of strong competition. If you miss out because someone else is a better fit, that is where the patience comes in. We have seen several examples recently of buyers who had missed out a number of occasions but then were able to secure subsequent practices that were great fits for them. 

To discuss these findings in more detail and what they mean specifically for your situation, contact DMY’s Directors below.

If you would like to learn more about the profile of the thirty practice sales that were included in this Market Data,  check out our accompanying article: Latest Market Data Deep Dive - May 2025 where we take a closer look at the service lines, levels of fees sold, age of sellers, reasons for selling and the gender of the buyers and sellers.