How to Sell an Accounting Practice

Why accounting practices sell differently

When you sell an accounting practice, the buyer is mostly paying for client relationships, and clients can leave. That single fact shapes how practices are priced and how deals are paid.

It’s also why timing matters now. CPA Practice Advisor reports that roughly 75% of CPAs are expected to retire within 15 years, with fewer internal successors than in the past. At the same time, private equity money has moved into the profession quickly. Owners have more buyer options than ever, but also more to sort through.

What accounting practices sell for

Smaller practices are priced on revenue because the main asset is client billings, not earnings power. Larger firms with non-owner management are priced on EBITDA.

Practice size	How it’s priced	Typical range
Under $500K revenue	Multiple of revenue	0.9×–1.2× revenue
$500K–$3M revenue	Multiple of revenue (or SDE)	1.0×–1.4× revenue, or 3.5×–5.5× SDE
$3M+ revenue with a management team	Multiple of EBITDA	4.0×–7.0× EBITDA
Large firms taking a private equity investment	Multiple of EBITDA	Most recent deals 5×–15× EBITDA

Sources: CT Acquisitions for practice sales; Pennsylvania CPA Journal (PICPA) for large-firm PE investments.

Try the free accounting practice valuation calculator to see where your practice lands, or compare current ranges in how much do accounting practices sell for.

What moves your multiple up or down

• Recurring revenue. Monthly bookkeeping, outsourced CFO work and advisory retainers are worth more than one-time or tax-season-only engagements.
• Client concentration. One large client making up a big share of fees lowers the price and lengthens the retention look-back.
• Owner dependence. If clients call you, not your team, buyers price in the risk that they’ll leave with you.
• Staff who stay. Senior staff who handle client work are part of what the buyer is paying for.
• Modern systems. Cloud-based tax and workpaper software makes the practice easier to take over.

How the price is paid: retention guarantees

Nearly every practice sale ties part of the price to client retention.

Part of the price	Typical share	When it’s paid
Cash at closing	70–80%	At closing
Retention-based payment	20–30% (up to 40% in some deals)	Over 2–3 years, based on how many clients stay

Source: CT Acquisitions.

A worked example

Say your practice bills $1,000,000 a year and sells at 1.1× revenue:

Price: $1,100,000 At closing (75%): $825,000 Retention-based (25%): $275,000, paid over two to three years

If 90% of the acquired billings stay with the buyer, and the agreement scales the deferred payment to retention, you might receive about $247,500 of that $275,000. Read exactly how “retention” is measured: by clients, by billings, and over which period.

Who buys accounting practices

Buyer	Typical fit	Typical terms
Individual CPA going independent	Solo or small practices, especially under about $300,000 in revenue	0.8×–1.1× revenue, often SBA-financed; mostly paid at closing with a smaller holdback
Peer CPA firm expanding its book	Owners who want to wind down over a few years	0.9×–1.3× revenue, 70–80% at closing; seller stays 1–3 years
Private equity-backed platform	Firms with about $2M+ revenue and a team that stays	Higher headline price; more complex structures and deferred payments
Family office	$2M+ practices with strong retention	Competitive pricing, flexible terms

Sources: CT Acquisitions; CPA Practice Advisor.

How fast private equity is moving in

• Financial buyers made 54.8% of accounting-services M&A in 2026 to date, up from 38.9% a year earlier, and sponsor deal volume rose 69.1% (Kadenwood Group).
• CPA Trendlines’ private equity deal tracker logged more than 200 accounting transactions by early 2026, with annual volume climbing from 22 deals in 2023 to 65 in 2024 and more than 100 in 2025.
• Large firms are part of it too. In August 2026, Crowe closed a strategic investment from KKR in its advisory business.

The Pennsylvania CPA Journal’s look at these deals adds a caution: private equity owners often cut partner pay after closing, and hold periods of four to seven years are common, so read the post-sale compensation terms as closely as the price.

How to sell your accounting practice, step by step

1. Decide your timeline and role. Do you want to leave after closing, or stay for two or three tax seasons? Your answer narrows the buyer pool.
2. Shift work to recurring engagements. Converting one-time clients to monthly or annual arrangements is the most direct way to raise your multiple.
3. Reduce owner dependence. Introduce clients to your senior staff now, not after the sale.
4. Clean up your numbers. Prepare three years of revenue by client and service line, and calculate SDE or EBITDA with clear add-backs.
5. Get a valuation range. Compare revenue multiples for your size and mix, and an EBITDA view if you’re over $3 million.
6. Approach the right buyers. Peer firms and individual CPAs for smaller practices; private equity-backed platforms if you have scale and a team.
7. Negotiate the retention terms as hard as the price. Measurement method, period, caps and what happens if the buyer changes fees or staff.
8. Plan the client handover. Agree on who calls each client, when, and what they’re told. The retention payment depends on it.
9. Close with a lawyer and a CPA who handle practice sales, including non-compete terms and how the price is allocated for tax. See capital gains tax on the sale of a business.

Questions to ask any buyer

1. Who will handle my clients’ work day to day, and what changes in the first 90 days?
2. How exactly is retention measured, and over what period?
3. What happens to my staff, their pay and their roles?
4. Will fees or services change for my clients?
5. If you’re private equity-backed, when do you expect to sell, and what happens to my deferred payments then?