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Top 10 Mistakes to Avoid When Selling Your Accounting Practice
M&A
Top 10 Mistakes to Avoid When Selling Your Accounting Practice
If you’re a CPA practice owner, odds are you’ve spent years - maybe decades - building your firm. Long hours, loyal clients, busy seasons, trusted staff, and more than a few late nights. So when it’s time to think about selling, it shouldn’t feel like a fire drill. And yet, far too many firm owners wait until burnout or circumstance forces their hand.
Selling your accounting practice isn’t just a transaction. It’s a transition - one that deserves thought, preparation, and perspective. In our work helping CPAs navigate accounting firm sales, we’ve seen some brilliant exits - and some avoidable disasters. Here are the 10 most common mistakes to avoid when putting your CPA business for sale - and how to sidestep them with confidence.
1. Waiting Too Long to Start Planning
Most CPAs don’t sell because they’re ready - they sell because they’re tired. By that point, the practice may already be losing momentum. Clients sense disengagement. Team members feel the shift. And the buyer? They’re inheriting a declining asset, not a thriving one.
Ideally, you should begin preparing for CPA practice sales two to three years before your desired exit. That’s not just to clean up the books (though you should), but to optimize your processes, clarify your client base, and develop leaders within your firm who can support a smooth handoff.
Planning early also gives you options - options around timing, buyer type, and deal structure. Waiting too long narrows the field, erodes value, and increases stress.
Think of it this way: You wouldn’t advise a client to start retirement planning at 64. Don’t do that to your practice.
2. Not Knowing What Your Practice Is Really Worth
Here’s the uncomfortable truth: your practice isn’t worth what you think it’s worth. Emotional attachment, past sacrifices, and legacy don’t show up on a buyer’s balance sheet.
Buyers evaluate your firm based on risk and reward. They look for strong recurring revenue, low client concentration, documented systems, and a team that’s likely to stay. If 70% of your billing comes from you personally, that’s a liability - not a selling point.
Working with a qualified valuation expert can help you understand the real market value of your firm - and what changes you can make to increase it. Without this clarity, you’re flying blind into negotiations and risk overpricing (and scaring off good buyers) or underpricing (and leaving money on the table).
3. Thinking All Buyers Are Created Equal
Putting your CPA business for sale doesn’t mean slapping it on a listing site and saying yes to the highest bidder. Who you sell to matters just as much as how much you sell for.
Some buyers are solo CPAs looking to grow their book. Others are regional firms trying to acquire a client base or staff. And then there are private equity-backed groups focused on roll-ups and aggressive growth.
Each type comes with different expectations, cultures, and transition dynamics. If preserving your team, brand, or client experience matters to you, you need to know what kind of buyer aligns best with your goals.
A mismatch in vision can derail a deal - or worse, make you regret it afterward. Know what matters most to you, then filter potential buyers accordingly.
4. Thinking Like a Seller, Not a Buyer
This is one of the biggest blind spots we see. You want a fair price, a clean exit, and maybe a little applause on the way out. That’s understandable. But buyers aren’t thinking about your victory lap. They’re thinking about risk.
Will clients stick around after you leave?
Is the staff loyal - or loyal only to you?
Are your financials clean and reliable?
Can the business run without you?
If the answer to any of these is “not really,” you’ve got homework. Buyers don’t want to fix a business; they want to grow it. The more your firm depends on you, the less valuable - and less sellable - it becomes.
Put yourself in a buyer’s shoes. Would you buy your practice as-is?
5. Keeping the Sale Too Quiet for Too Long
Confidentiality is important - but taken too far, it becomes a liability. We’ve seen firm owners keep the sale so secretive that they exclude key staff until the day of the announcement. The result? Panic. Resignations. Deal risk.
Buyers don’t just acquire clients - they’re acquiring continuity. And continuity requires trust.
Have a staged communication plan. Identify which team members to bring in early. Frame the message around opportunity and stability. Support clients with clear messaging about what’s changing - and what isn’t.
Silence breeds uncertainty. And uncertainty kills deals.
6. Trying to Do It Alone
You may be a brilliant tax strategist or trusted advisor, but unless you’ve sold an accounting firm before, this is new territory. And it’s littered with landmines.
DIY deals often go wrong - bad valuations, loose contracts, unclear terms, missed tax strategies. Worse, you’re emotionally invested, which makes it harder to negotiate clearly or walk away when needed.
Engage professionals - M&A advisors who specialize in CPA practice sales, legal counsel, tax planners. The ROI of good advice during a sale is almost always positive. You’ve helped others navigate big financial moments for years. Give yourself the same benefit.
7. Focusing Only on the Headline Price
We get it. Seeing a seven-figure offer is exciting. But don’t confuse price with payday. What matters is not what the buyer promises - it’s what you actually receive, and when.
Here’s what you need to ask:
Is this an asset or stock sale?
What are the payment terms - upfront vs. earnout?
Are there clawbacks or performance milestones?
How will this be taxed?
We’ve seen $1.2M deals result in less net value than a well-structured $900K one. Be suspicious of vague promises and “don’t worry, we’ll work that out later” clauses. Structure is everything.
8. Letting Ego or Fear Drive the Process
This one’s personal. For many CPAs, their identity is deeply tied to their firm. Letting go - emotionally, mentally, practically - is tough.
That can show up in a few ways:
Rejecting good offers out of pride.
Micromanaging post-sale transition.
Backing out last minute due to fear of the unknown.
These are all understandable. But unchecked, they can sabotage years of effort. Selling your practice is not the end of your value - it’s the beginning of a new chapter. Approach it with clarity, not ego. Confidence, not fear.
9. Underestimating the Transition Period
Buyers want a seamless handover. Clients need to trust the new leadership. Your team needs to feel supported. That doesn’t happen overnight.
Some transitions last 30 days. Others span 12–18 months, depending on deal size, buyer type, and your involvement. Clarify expectations upfront - and deliver on them.
Avoid vague promises like “I’ll stick around as long as needed.” Instead, propose specific transition plans tied to milestones. That keeps everyone accountable and aligned.
10. Ignoring Tax and Retirement Planning
Here’s where your future financial freedom can quietly evaporate.
How your deal is structured will determine your tax burden. Capital gains vs. ordinary income, installment payments vs. lump sum, retirement account rollovers - it all adds up.
If you’re planning to live off the proceeds or fund a new venture, those details matter a lot. Don’t wait until after the sale to find out you could’ve saved six figures with better tax planning.
Involve your CPA (yes, even you need one), your wealth advisor, and your M&A team early. Plan with the end in mind.
Sell With Vision, Not Desperation
Selling your accounting practice is one of the most important business decisions you’ll ever make. Do it with intention. Do it with clarity. And most of all - do it before you feel forced to.
Start with preparation, perspective, and the right team around you. Whether you’re five years from retiring or starting to get curious, now is the time to plant the seeds of a successful exit.
Because when the time comes, you don’t want to sell just to get out. You want to sell because you’re ready to move forward.
MYCPE ONE helps accounting professionals like you navigate CPA practice sales with expertise, empathy, and proven systems. Whether you’re just exploring or actively preparing for sale, our advisory team can help you:
Understand your firm’s true value
Identify the right type of buyer
Structure a deal that supports your goals
FAQS
The best time to sell your accounting practice is when the business is still growing or stable - not declining. Ideally, you should begin preparing for a sale 2–3 years in advance. This allows you to clean up financials, strengthen your team, and position your firm for maximum value. Waiting until burnout or health issues can reduce the attractiveness of your firm to potential buyers.
From preparation to closing, most accounting firm sales take anywhere from 6 to 12 months. That timeline includes valuation, identifying the right buyer, negotiations, due diligence, and transition. Starting early and working with experienced advisors can help avoid unnecessary delays.
Your CPA business for sale will typically be valued based on factors like recurring revenue, profitability, client mix, staff retention, and how dependent the firm is on you personally. While revenue multiples are common, buyers are ultimately purchasing future cash flow with minimized risk. An experienced M&A advisor can help provide a proper valuation.
Yes - but at the right time and with the right message. Over-secrecy can backfire, especially if key staff leave due to uncertainty. It’s wise to loop in essential team members early during the process and develop a structured communication plan for clients to maintain trust and continuity.
While it’s possible to sell on your own, it’s not recommended unless you have significant deal experience. A qualified advisor who understands CPA practice sales can help you avoid costly mistakes, find the right buyer, negotiate favorable terms, and manage the emotional aspects of the process.
One major mistake is not considering the tax implications of deal structure. Whether your sale is treated as an asset sale or stock sale can significantly affect your after-tax proceeds. Another is failing to consult your CPA or financial planner in advance. Proper planning can help preserve more of your payout for retirement or reinvestment.
Saul is a leading expert in partnerships, content strategy, and M&A advisory for the accounting and professional services industry. He specializes in creating impactful learning content, fostering strategic partnerships, and driving firm growth through insightful tax strategies and dealmaking. Saul helps professionals scale their practices, navigate industry shifts, and maximize opportunities in accounting and CPE-focused initiatives.
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