for sale

For many accounting practice owners, the decision to sell isn't just about the numbers — it's about the people. Your team has helped build what you have. They've supported your clients through tax season after tax season, and many of them may have been with you for years. It's natural to worry about what happens to them once you sign on the dotted line.

The good news is that staff transitions, when handled correctly, are one of the most manageable parts of an accounting practice sale. Here's what you need to know.

1. Buyers want your staff — that's a good thing

In most accounting practice acquisitions, the incoming buyer isn't just purchasing your client list. They're acquiring your firm's knowledge, systems and the relationships your team has built with those clients. A skilled, experienced team is a significant part of what makes your practice valuable.

Most buyers will actively want to retain your existing staff. High client retention rates are closely linked to staff continuity — clients who know and trust their accountant are far more likely to stay with the practice after a change of ownership. A buyer who understands the market (and any serious buyer should) will approach staff retention as a priority, not an afterthought.

2. Your employees' entitlements are protected by law

Under Australian employment law, the sale of a business does not automatically end your employees' contracts or extinguish their entitlements. Here's how it generally works:

• Accrued leave entitlements — including annual leave and long service leave — must be accounted for as part of the sale. These are typically either paid out by the vendor at settlement or transferred to the incoming employer.
• If the buyer takes on your staff under the same terms and conditions, existing entitlements (including recognition of prior service for long service leave purposes) are usually preserved.
• The Fair Work Act 2009 provides specific protections around transmission of business, ensuring employees are not left worse off because of a change of ownership.

It is strongly advisable to engage an employment lawyer or HR consultant early in the sale process to ensure all entitlements are correctly identified, disclosed and handled in the sale agreement.

Tip: Failing to accurately account for staff entitlements is one of the most common causes of post-settlement disputes in practice sales. Get these figures documented and disclosed to the buyer as early as possible.

3. What happens during transition — and who tells the team?

One of the most sensitive questions vendors ask us is: when do I tell my staff the practice is for sale?

There is no single right answer, but as a general principle, confidentiality in the early stages of a sale protects everyone — including your employees. Premature disclosure can cause unnecessary anxiety, prompt key staff to seek other positions, and in some cases, unsettle clients if word spreads.

A well-structured sale process will typically include:

• A confidentiality period where only essential parties are aware of the sale
• A planned announcement to staff once heads of agreement or a conditional contract is in place
• An introduction period where the incoming buyer meets the team before settlement
• A transition period — often 3 to 12 months — where the vendor remains involved to support handover and maintain staff and client confidence

At Quinn & Associates, we help vendors structure a transition timeline that is fair to staff, protects client relationships and gives the incoming buyer the best possible start.

4. What if the buyer doesn't retain all staff?

In some cases — particularly where there is significant overlap between the buyer's existing team and yours — not all positions may be retained after settlement. This is relatively uncommon in smaller practice sales, but it does occur.

Where redundancies arise, the vendor and buyer need to be clear in the sale agreement about who is responsible for redundancy payments. If the buyer is not offering ongoing employment, this may fall to the vendor prior to settlement, or be factored into the purchase price as an adjustment.

Again, this is precisely why engaging professional advisers — legal, HR and your practice broker — before finalising any agreement is essential. Getting this right protects both parties and, most importantly, your team.

5. The role of your broker in managing staff transition

A good practice broker does more than match buyers and sellers. At Quinn & Associates, we help you think through the human dimensions of a sale — not just the financial ones.

We assist with:

• Structuring the sale timeline to minimise disruption to your team
• Preparing a confidential information memorandum that accurately represents your staffing structure and entitlements
• Qualifying buyers to ensure they have genuine intentions around staff continuity
• Facilitating introductions between buyer and team at the right stage of the process
• Coordinating with your legal and HR advisers to ensure the sale agreement addresses staff matters clearly

Selling your practice doesn't have to mean leaving your team behind. With the right buyer and the right process, your staff — and your legacy — can be in very good hands.

Contact Quinn & Associates for a confidential discussion.

You can also schedule a private Zoom meeting at www.quinnassoc.com.au/meeting

Quinn & Associates

Tel: 1300 784 888

E: quinn@quinnassoc.com.au

Zoom: To Book A Zoom Meeting

John McCulloch:- john.mcculloch@quinnassoc.com.au

Chris Clifford:- chris.clifford@quinnassoc.com.au