Practice Sold

Canberra Northside

Accounting Practice for Sale


PPA04067 – Canberra Northside Accounting Practice for Sale

This opportunity represents an ideal bolt-on to an existing practice or its continued operation as a standalone firm led by an experienced practitioner.

Currently located some 10 kms north of Canberra’s CBD, this firm specialises in the servicing of small business locally and further afield. The firm’s advisors are highly experienced with clients receiving contemporary and relevant advice tailored to their needs. The firm is built on strong client relationships and high standards of service. Fees circa of $1.3 Mill for FY 2018.

Clients range in age and are a mix of businesses (predominately in the IT industry, construction and medical specialists), investors and individuals. Current services reflect traditional compliance, BAS, bookkeeping and advisory, with the potential to also expand into audit, financial planning, insurances and continued growth in bookkeeping services. Referrals from existing clients, networking, as well as marketing, are the general sources of new clients with some more recent additions now representing larger clients within the firm. Competition is relatively limited within the surrounds of this practice.

Tax lodgements for 2017 numbered around 1,750, with revenue contributed predominately from individual returns at 40% of fees, trusts at 10% of revenue and companies at 17% of fees. Advisory services contribute just over 10% of annual revenue with the firm also completing over 100 BAS per quarter. The average lodgement fee for the period was $621. Audits, statutory or SMSF, are not currently prepared by the practice.

The firm’s average client size is just under $1K per group with a strong focus on annual fees within the ranges of $200 – $1K, contributing around 24% of annual revenue, and then again within the $3K – $20K fee stratas, which contribute almost 45% of annual fees.

The top 20 client groups contribute some 22% of total fees overall with the largest client equating to around $27K per annum. Over half of the groups have been serviced by this firm, or its predecessor, for ten years or more, with key contacts ranging in age from their mid- thirties to mid-seventies, several with succession in place. Most are ACT or thereabouts based.

Key benchmarks such as WIP, debtors, write offs, charge rates, and salaries are all within expectations or better, with key personnel expected to remain following the proposed transaction.

The vendor is selling the practice for health reasons and to relocate with their family, however they will be available to assist with a transition on a reduced basis over six months. The current lease concludes at the end of July 2018, providing the purchaser with the option to either remain at its current location or relocate elsewhere within reason.

E-mail to request a confidentiality agreement or phone (02) 9233 4333.

The completion of a confidentiality agreement is essential prior to the supply of any information.