Accounting practice valuations for Melbourne principals, fee-base sales and mergers.
For selling a block of fees, merging with another firm, admitting or retiring a partner, and restructures. Independent of both sides, with the fee fixed before work starts.
An accounting practice can be valued two ways: as a block of recurring fees, priced in cents for each dollar of fees, or as a whole firm, priced on its maintainable earnings. Both should point to a similar answer once fee quality, retention and the firm's margin are taken into account. Our valuers prepare independent valuations for Melbourne practices selling fees, merging, admitting partners or planning a principal's retirement.
Fee base or whole firm
When a block of clients moves to another firm, the buyer is usually absorbing them into its own staff and systems, so the price is quoted per dollar of recurring fees. When a whole firm changes hands, with its people, office, software and brand, the buyer is paying for a profit stream, and an earnings multiple fits better. The valuation works out which question it is answering and then checks one method against the other. A fee-base price that implies an earnings multiple no buyer would pay, or the reverse, is a sign something in the numbers needs another look.
Not every dollar of fees is worth the same
Recurring tax and compliance work for individuals and small businesses is the most dependable revenue a practice has. Bookkeeping recurs but at thinner margins. One-off advisory work adds profit but is hard to count on. The valuation grades the fee base by type, by client and by partner, and looks at lock-up, meaning unbilled work plus debtors, because slow billing and write-offs say a lot about fee quality. Retention terms matter too: where part of the price is clawed back if clients leave in the first year or two, the headline figure and the amount actually received can differ.
Mergers between Melbourne firms
When two Melbourne practices combine, the question is less what each is worth on its own and more what share of the merged firm each side should get. The valuation applies the same method to both firms so the comparison is fair, adjusts partner pay to market on each side, and allows for differences in fee mix and client concentration. It can also value a principal's interest for a later exit under the merged firm's agreement.
Why a firm should not value itself
Accountants are well placed to read the numbers, which is exactly why a partner valuing their own firm for a buy-in, or a firm valuing a practice it is about to merge with, has a conflict. An independent report gives the incoming partner, the bank and the other side a figure prepared by someone with no stake in the result. Our fee is fixed before work starts and does not depend on the value concluded, and we decline engagements where a client wants a particular number rather than a supportable one.
Common questions.
What does cents in the dollar mean?+
It is the price paid for each dollar of recurring annual fees in a block of clients, so it works like a revenue multiple. Unbilled work and debtors are usually dealt with separately, and the price is often adjusted later for clients who do not stay.
Is a partner buy-in priced lower than an outside sale?+
Often it is, and that can be reasonable: a buy-in is priced inside a continuing relationship, without competing bidders, and the new partner often funds it from future drawings. If the price also matters for tax, market value is usually the test, so the valuation can report both figures and explain the difference.
What information do you need from the practice?+
Usually a fee listing by client and partner for the last three years, split between compliance, bookkeeping and advisory work; aged unbilled work and debtors; partner pay and drawings; staff costs; the partnership or shareholders agreement; and the terms of any past fee purchases or sales.
What does it cost and how long does it take?+
The fee is fixed before work starts and set by annual turnover: $1,495 + GST under $2 million, $2,495 + GST for $2 million to $3 million, $3,495 + GST for $3 million to $10 million, and a written quote above $10 million. Small reports take 2 business days and medium and large reports 3 business days, counted from when payment and all the information we need are in.
Talk to a valuer
Tell us what you need valued.
A fifteen-minute call confirms the package, the fixed fee and the delivery date, before you commit to anything.
03 8375 4177Mon to Fri, 9am to 5:30pm Melbourne time
Send the form and we reply within one business day. No documents needed to start.
Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed report in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
Larger business? Tell us in the form and we recommend the right package. All fees
Last reviewed 10 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne.