How to Buy an Accounting Practice in South Africa

Acquiring an existing book of clients is one of the fastest ways to grow a firm — you buy recurring revenue, systems and staff in one move. Here's how to buy an accounting practice in South Africa, step by step.

1. Get clear on what you're looking for

Decide on practice type (accounting, tax, audit or bookkeeping), preferred region, the fee size you can absorb, and whether you want staff and premises or just the client book. A clear brief saves months.

2. Find practices confidentially

On a direct marketplace you can browse every verified listing once you register, filtering by region, practice type and recurring-fee band. Because sellers value discretion, you'll see high-level detail first and gain full information once the seller agrees to engage with you.

3. Value it on recurring fees

Expect to pay in the region of one to one-and-a-half times annual recurring fees. Look hard at fee quality: how sticky are the clients, how concentrated is the income among a few large clients, and how dependent is the practice on the current owner's personal relationships?

4. Do proper due diligence

Verify the fee base, review client concentration and retention history, inspect WIP and debtors, check staff contracts and the lease, and confirm the practice's own tax and regulatory compliance. If it's an audit practice, confirm the registration requirements apply to you (see our auditing-practice guide).

5. Arrange financing early

Options include bank finance, vendor finance (the seller is paid over time), or transaction financing arranged through the marketplace. Having funding lined up makes you a credible buyer and speeds up the deal.

6. Structure and close

Most deals tie part of the price to client retention over the handover period, protecting you if clients leave. Get the sale agreement drafted or reviewed by a professional before you sign.