Who is Selling  Their Accounting Practice - and Why

Published May 2023

Last month we released our latest six monthly Market Data to reveal current buyer activity and selling prices.

This month we are taking a closer look at the profile of practice owners who have been selling their practices. Whether you are planning to sell or planning to buy,  this is a valuable read to better understand the market and set yourself up for success. 

All data below relates to twenty practice owners / practices with sales listings over the last twelve months. 

Key Findings

70% of Sellers are Aged over Sixty

It is not surprising to see the age of sellers skewed towards those at retirement age. What we do find interesting though is that 30% (six sellers out of the twenty) are aged under sixty with sellers in their thirties, forties and fifties. This creates a very different discussion between buyer and seller and can create interesting mutual benefits if handled correctly. 

20% of Owners are Selling for Reasons other than Retirement 

Retirement is the obvious reason why practice owners sell, and it is the case for 80% of our twenty practices here. It is not the only reason though with health, lifestyle changes and other business ventures all leading practice owners to take their practice to market. 

 Females are 1 in 5 Sellers - but only 1 in 20 Buyers 

Only 19 listings are featured re Buyer Gender as one was purchased by a Male and Female two Partner firm. 

It does not surprise us to see that 80% of sellers are male, given that sellers are typically older and it is less common for females to have been running their own practice for the last twenty or thirty years. However, we do find it curious to see that Buyers remain overwhelmingly male (95%) given we know there are many experienced and capable female practice owners looking to accelerate their growth through acquisition.  We would love to hear your feedback on this!

The Wrap

At one level readers will not be surprised by these findings. The majority of practice owners who are selling are male, over sixty and looking to retire. However, a closer inspection reveals there are some interesting nuances to this. We are seeing practice owners looking to sell much earlier in their careers and for reasons other than health. Female owners looking to sell are increasing in numbers too, although we are yet to see this translate at the same level through to female buyers. Understanding these nuances, and recognising there is not one size fits all is important to succeed in todays competitive market for practice sales.

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

Mark Emney

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

Daniel Jones

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