So, you’re thinking about selling your accountancy practice? Planning ahead and getting organised will not only make the process smoother, but could also mean a bigger payout when the deal closes. Here’s how to get your practice ready for sale—while maximising its value in the eyes of prospective buyers.
Assess Where You Stand Right Now
Before you even whisper a word about selling, you need to know exactly where your practice stands.
1. Get a Proper Valuation
Start with a professional valuation from experts who know the accountancy sector inside out. Value isn’t just about last year’s profit—buyers also want to know about growth potential, client base stability, service specialisms, and future earning power. Tangible assets (your computers, software, furniture) and intangible assets (contracts, intellectual property, goodwill) all count. Specialists like Bains Watts Ltd can help you set a realistic and enticing asking price—see our consultancy services for more info.
2. Identify Your Unique Strengths
Looking to stand out from the crowd? Take stock of what makes your practice attractive:
- Do you have long-standing client relationships?
- Is your team particularly skilled or qualified?
- Are your systems up-to-date with MTD (Making Tax Digital) compliance?
- Do you offer niche advisory services, or a full suite of tax and audit?
Make a list and be ready to sell these strengths to your future buyer.
Gather & Polish Your Documentation
Nothing chills a sale quite like shoddy paperwork. Buyers want to see a smooth operation and transparent recordkeeping, so now’s the time to get your house in order.
Financials First:
- Profit & loss statements (last 3–5 years)
- Tax returns
- Balance sheets
- Debtors & creditors ledgers
- Up-to-date management accounts
Consider having your accounts audited to add a layer of trust and professionalism.
Operational Documentation:
- Staff contracts, NDAs, and HR files
- Supplier and lease agreements
- Details of any large client contracts
- Up-to-date client engagement letters
- Intellectual property registrations
Legal & Compliance:
- Shareholder/membership agreements
- Insurance (professional indemnity, public liability, etc.)
- Data protection/GDPR compliance documentation
Well-organised documentation doesn’t just make due diligence easier; it tells buyers you run a tight ship, and reduces the chance of nasty surprises scuppering the deal.
Invest in Your Practice (Even If You’re Leaving)
It might feel counterintuitive to invest just before selling, but small improvements can increase value and speed up a sale.
Tidy Up Your Client List
- Reduce dependency: Is more than 15% of your fee income from one client? A more balanced portfolio is more appealing.
- Minimise low-fee, high-maintenance clients: Now’s the time to let go of those who drain resources without offering much in return.
- Update engagement terms: Ensure all clients are under current engagement letters and T&Cs.
Optimise Operations
- Automate routine tasks (think payroll, expenses, onboarding)
- Document your workflows—buyers want to know your business can run smoothly without you
- Make sure your systems (practice management, tax, and accounts production software) are up-to-date and scalable
Review Team Structure
- Ensure contracts are up-to-date and reflect current roles
- Tidy up job descriptions, set up clear lines of responsibility, and consider retention bonuses or succession plans for key staff
- Provide basic handover plans and training guides—buyers love seeing ready-to-go resources
Plan Your Exit Like a Pro
Set a Realistic Timeline
Selling an accountancy practice isn’t an overnight process. From prepping documents to finding a buyer to post-sale transition, you’re looking at anywhere from 6 months to 2 years. Give yourself a runway and avoid the temptation to rush.
Get Expert Support
A successful sale requires teamwork:
- Broker/Consultant: Can help market your practice, filter buyers, and negotiate on your behalf. (Check what we do at Bains Watts Ltd.)
- Solicitor: To draft airtight agreements, handle TUPE, and ensure regulatory compliance.
- Accountant/Tax Adviser: For structuring a tax-efficient exit and preparing for personal financial planning.
- IFA/Pension Specialist: Especially if you plan to retire.
Decide What You Want
Think about your own non-negotiables:
- The kind of buyer you’d prefer (independent, consolidator, private equity, another local firm)
- Transition period expectations (will you stick around for a handover, or hand over the keys and ride off into the sunset?)
- Deal structure (one-time payment, staged payments, retention clauses)
Make Your Practice Easy to Buy
Be Transparent
Buyers are spooked by surprises. Disclose any open disputes, loans, or skeletons up front. If you’re clear and upfront, negotiations will run much smoother.
Secure Client Retention
High client retention boosts value. Reassure clients about continuity, and consider a handover period where you help maintain relationships post-sale. Preparing communication templates and a transition calendar can help smooth this process.
Prepare for Buyer Due Diligence
Think of due diligence as a second job for a few months—buyers (and their solicitors) will want to see:
- Regulatory compliance history (including AML, GDPR, and professional body records)
- Payroll and HR obligations (holiday pay, staff pensions)
- Lease terms, break clauses, and property obligations
- Data and cyber security arrangements
Don’t Forget the Human Element
It’s not just numbers and paperwork: having a calm head and an honest approach goes a long way.
- Keep staff informed (as much as confidentiality allows)
- Plan communications to clients—timed and coordinated to avoid panic
- Get testimonials and positive references from clients and staff; these can be gold dust for buyers (see real feedback on our testimonials page)
Selling your practice is a major milestone—it’s a reward for years of hard work. With some forethought, careful preparation, and a sprinkle of expert support, you can make the transition both profitable and positive.
Thinking about your next step?
If you’d like personalised guidance or an informal chat about how to get started, get in touch with us at Bains Watts Ltd. Let’s help you build a sale plan that does your legacy justice.
