# Legal Herald: Accounting Practice Sales

> How CPA, tax and bookkeeping practices are valued and sold: revenue multiples, client retention clauses, earn-outs, confidentiality and ownership rules.

Website: https://accounting-practice-sales.legalherald.com/
Part of: [Legal Herald](https://legalherald.com/llms.txt)
Last Updated: 2026-11-06

## Guide
- [Selling a CPA or Bookkeeping Practice: Value, Terms and Rules](https://accounting-practice-sales.legalherald.com/)

## FAQ

### How much is my accounting practice worth?
Small accounting and tax practices have long been priced around one times annual gross revenue, with published ranges running from roughly 0.75 to 1.5 times. Recurring monthly work, strong fee levels, low client concentration and staff who stay push value up. The final amount paid often depends on how many clients stay after the sale.

### What is a client retention clause in a practice sale?
A retention clause adjusts the price based on how much of the seller's revenue the buyer actually keeps, usually measured over one to three years after closing. Part of the price is held back or paid over time, and if clients leave, the payments shrink. Negotiate how retention is measured, what counts as a lost client and whether fee increases count.

### Do I need my clients' permission to sell my CPA practice?
AICPA ethics rules allow a prospective buyer to review client information during a sale, as long as the buyer agrees to keep it confidential. Transferring client files and tax return information after the sale raises separate confidentiality rules under the AICPA code, state board rules and federal tax law, so many sellers notify clients and get consent before files move.

### Can a private equity firm buy my CPA firm?
Not the audit and attest side directly in most states. State accountancy laws generally require a majority of a CPA firm's ownership to be held by licensed CPAs. Private equity deals usually split the firm, with investors buying the tax and advisory business while CPAs keep the attest firm.

### How long does the seller stay after selling an accounting practice?
It varies with the deal. Small sales often include a transition period of one tax season or a few months of introductions. Mergers and private equity deals usually require partners to stay for several years under employment agreements, with part of the price tied to performance.

## Policies
- [Sponsored content policy](https://legalherald.com/sponsored-content-policy/)
- [Editorial standards](https://legalherald.com/editorial-standards/)