Industry Focus · Professional Services
Selling a professional services firm?
We help owners of Australian professional services firms prepare for a sale and run it, as one generation of partners steps back. Partner relationships, brand and client trust all have to survive the handover.
01 · Coverage
Sectors we serve.
The structure, the buyers and the way a firm is valued change with every sub-sector.
- Law firms
- Management, IT and strategy consulting
- Engineering and architecture
- Marketing, advertising and PR agencies
- Staffing, recruiting and executive search
- Insurance brokerages
- Wealth management
- Specialist and tech-enabled firms
By the numbers · Indicative
24 – 36mo
Earn-out tied to retention
15 – 20%
The most any one client should be of revenue
Almost all
Practice deals use earn-outs
02 · Market dynamics
What's driving M&A right now.
- Succession. Founders in legal and accounting firms are stepping back.
- Private equity. Investors are moving into wealth management and insurance broking at scale.
- Roll-ups. Holding companies are buying marketing, advertising and recruiting firms.
03 · Value drivers
What buyers pay for.
In professional services, the people are the firm. Buyers pay for what survives a partner walking out the door.
- Retainers and repeat work
- No single client above 15 to 20% of revenue
- A strong brand in a clear niche
- Partners and fee-earners who stay
Specialist firms command the premium. Generalists sit at the lower end.”
04 · Mechanics
How deals are structured, and what catches owners out.
Earn-outs are almost universal here, so the way they are written is where the deal is won or lost.
- Earn-outs follow retention. They run 24 to 36 months, tied to client retention and revenue.
- Partner buy-ins are common. Often alongside keeping a share of the firm.
- Restraints matter. Restraint of trade clauses are material to value.
A founder who is also the rainmaker is the defining challenge in this sector.
- Clients tied to one partner. They can leave during the handover.
- Work in progress. Disputes over how unbilled work and accrued income are valued.
- Inherited exposure. Professional indemnity claims, trust accounts and regulatory issues.
Other industries we focus on
Considering a sale or merger?
Start a confidential conversation.
If your name is on the door and you're thinking about stepping back, talk to us first. The first call is confidential and carries no obligation.
Request a confidential consultation