Larger Practice Sales - Common Traits 

Published July 2025

DMY have had a lot of recent experience with larger firms selling fees of $3-5+ million. Here are some six common traits we are seeing in these larger deals:

1: Practices can sell on a revenue OR an earnings multiple. 

• There is no "right" or "wrong", and a range of factors should be considered.
• We assess both then decide with our clients before going to market.

 2: Multiple equity holders are involved, each with their own needs and exit timeframes to be catered for 

• Older owners, often the catalysts for the sale, will want to sell their equity and transition over a shorter period, eg 1-3 years.
• Younger owners may want to retain equity and continue on, potentially for up to 10+ years.
• This requires careful navigation but can be resolved to meet the needs of all.
• Many buyers prefer owners staying on with skin in the game, and/or a staggered exit, in order to reduce risk of client loss.

3: There is strong demand with buyers willing to pay attractive prices

• Buyers regularly tell us they prefer one large acquisition to three smaller ones.
• Larger ones don't come along as often so there is always high interest.
• The selling price should be rational and provide buyers a healthy return but we consistently see larger selling practices achieve higher sale multiples.

4:  In addition to local buyers, there will be strong interest from interstate.

• There are many firms across Australia looking to expand interstate.
• Practices selling with $3-5+ million in fees are appealing because they create a platform for future growth.
• Most common in metro locations but can also apply for regional sellers.

5:  A diversity of buyers provides starkly different post-sale environments for sellers to consider 

• Local buyers may require an early location change to build a "one team" culture and save property costs, which can bring significant operational change.
• With interstate buyers, there may be far less initial change to the way the selling practice is run (although this can be offset by a greater burden remaining on transitioning sellers if the buyer does not have local senior resources available to step in).
  

6:  Overall deal time is longer, but not to find the right buyer

• It can take no more time to find the right buyer and proceed to a Heads of Agreement than it does with smaller practice sales.
• Where deal time extends though is through due diligence and contract execution.
• This is not surprising. Due diligence will correlate to the deal size and complexity, while there will be additional documents such as Shareholder Agreements to negotiate. 

In summary, there is lots to consider and navigate for owners of larger practices.  But all achievable with the right preparation and expert guidance to support you through the process.

Reach out for a confidential discussion if you'd like to learn more.

Mark Emney

Director

Mobile: 0434 079 530
Email: mark@dmyassoc.com.au

Daniel Jones

Director

Mobile: 0401 493 773
Email: daniel@dmyassoc.com.au