Contents
- The two routes at a glance
- How a broker sale works
- How a direct sale works
- What the broker's commission costs
- Why confidentiality matters
- When to use a broker
- The questions to ask any buyer (or broker's buyer) before you engage
- What "direct" looks like at Practice Group
- Questions
Once you've decided to sell, the first decision is how: through an accounting practice broker who markets your firm to a pool of buyers, or directly to a single buyer. Both routes can produce a good outcome. They differ on cost, speed, privacy and control, and the right choice depends on which of those matters most to you. On either route, a short list of direct questions will show you whether a buyer is serious.
The two routes at a glance
| | Broker | Direct buyer |
|---|
| Who you deal with | An intermediary, then buyers they introduce | The decision-maker who will own the firm |
| Cost | Commission, commonly 5–10% of the deal | No broker commission (your own legal/tax costs only) |
| Speed | Longer — marketing, multiple parties, coordination | Usually faster — one counterparty |
| Confidentiality | Your practice is effectively "on the market" | One private conversation; early talks can be anonymous |
| Competitive tension | Can create a bidding process | One negotiation |
| Control | Runs to the broker's process and timeline | Shaped around your timeline and handover |
| Certainty of buyer intent | Varies — some buyers are exploratory | You can judge the buyer directly |
How a broker sale works
An accounting practice broker prepares information on your practice, markets it (usually anonymised at first) to their network of buyers, fields interest, and helps manage the process to completion in exchange for a fee — typically a percentage of the deal value. The main advantage is reach and competitive tension: if you have a highly desirable practice, multiple interested parties can push the price up. The costs are commission, time and exposure: more parties in the room, a longer timeline, and buyers in the market knowing your firm is for sale.
How a direct sale works
A direct accounting practice sale means dealing with the buyer themselves. You talk to one buyer and pay no intermediary commission. Because you're speaking to the person who will run the practice, things tend to move faster, stay quieter, and be shaped around what matters to you — your timeline, your staff, your clients. The onus shifts onto you to judge the buyer: are they credible, will they look after what you built, and can they fund and complete the deal?
What the broker's commission costs
Broker commission on a £300k deal
On a £300,000 practice, a 7% broker commission is £21,000 — paid out of your proceeds. A direct sale still carries your own legal costs and (sensibly) tax advice, but no intermediary fee. On larger deals the gap runs well into five figures. The saving matters only if the direct route also delivers a comparable price and a buyer you trust. The questions to ask any buyer help you test both.
Why confidentiality matters
Your name, your team and your client relationships are the practice. In a public process, competitors may learn you're selling, and staff can get nervous and clients start to wonder what's changing. A key manager who hears a rumour may start looking for another job, and a big client who senses instability may take a call from a rival. In a direct, confidential sale, people find out once there's an agreed plan. That protects retention, and retention protects value.
When to use a broker
A broker earns their fee when your priority is maximising competitive tension: you have a sought-after practice, you're comfortable with a more public, longer process, and you want several bidders competing. If you value discretion, speed and a relationship with the person buying, and would prefer not to pay a commission for introductions, selling direct suits you better.
The questions to ask any buyer (or broker's buyer) before you engage
- Are you the actual buyer, or introducing me to third parties?
- How is the price structured — how much cash on completion, how much deferred, is there an earn-out?
- What is contingent, and on exactly what conditions?
- What happens to my staff and my clients after completion?
- Can you show me practices you've bought, and speak to those sellers?
- How will you fund the deal, and what's your timeline to complete?
- How will you keep this confidential until we're both ready?
A serious, operator-led buyer will answer each of these plainly.
What "direct" looks like at Practice Group
You speak to the buyer from the first call. The process runs: a confidential call, an indicative valuation range, light-touch due diligence, heads of terms, then completion and a protected handover for your clients and staff. It is designed for owners who want to choose who looks after their clients and staff, as well as agree a fair price.
