DMY Associates
New Market Data: 110 Cents is the New "Dollar in the Dollar"
DMY Associates

Welcome to this week's Market Update where we are delighted to share our latest Market Data relating to our twenty most recent practice sales. The key insights are:

  • Metro practices are selling for an average of 110 cents in the dollar. Significantly, fourteen of the seventeen metro practices sold for more than 100 cents in the dollar confirming our view that "110 cents" is the new "dollar in the dollar". Very good practices, particularly where there is strong competition, are going for up to 130 cents in the dollar, with larger practices selling on a multiple of earnings.
  • 76 interested buyers, on average, enquire about metro practices listed for sale through DMY. This is consistent with six months ago and remains c.50% higher than pre-COVID. This high volume of practices also brings a high diversity of buyers for a seller to shortlist from. As one client said to us recently: "I have been pleasantly surprised and pleased at the number and quality of people we have chosen to meet. They are all different which gives us some really good options."
  • For regional practices, results are similarly healthy. Sale prices average 109 cents in the dollar and there are 32 interested buyers for every listing.
  • 17% of the sale price is held in retention, with a significant range between 10% and 30%. 15% remains the most common amount, and retentions are rarely longer than 12 months.

You can access all of the supporting detail on our website here: DMY Market Data April 2023

Implications for sellers - if you have a good quality practice and are thinking of selling, you should feel confident of achieving a successful sale with a strong commercial outcome and a good new home for your clients and team. Don't take it for granted though and be attuned to what's most important to your preferred buyer.

Implications for buyers…a good understanding of the market, patience, empathy and flexibility are all important. Cultural fit will get you a seat at the table but you will need to be commercially sharp and attuned to what's most important to the seller if you want to secure that prized acquisition. 

To discuss these findings in more detail, and what they mean specifically for your situation, contact DMY’s Directors below.

As a reminder, we listed three new practices last week:

All are receiving good levels of interest but it is still early days so register your interest if any of them look like a good fit as the Vendors will be started to meet interested parties shortly.

Finally, May has kicked off with some early client success with a 1 Principal firm, Mornington Peninsula $1,000,000 in fees (ID#98) executing a Heads of Agreement with a preferred purchaser and now moving through due diligence. DMY generated interest from 39 buyers for this opportunity, and it was first listed less than three months ago.

In our next Market Update we will be sharing more new data as we deep-dive into who is selling. Stay tuned for some interesting insights around seller ages, reasons for selling, fees being sold and gender.

See you out there!

Mark and Daniel

DMY Associates
DMY Associates

1 Principal firm, Melbourne Inner Suburbs $430,000 in fees (ID#200) - sold 03/23

1 Principal firm. Melbourne East Fees of $448,000 Accounting and $294,000 (ID#209) - sold 02/23

1 Principal firm,  Regional North Victoria  $1,132,000 in fees (ID#199 - sold 01/23

1 Principal firm, South Melbourne $620,000 in fees (ID#204) - sold 11/22

2 Partner firm, Melbourne Inner Suburb $1,500,000 in fees (ID#168) - sold 09/22

1 Principal firm, Regional North East Victoria Fees of $433,000 in Accounting and $62,000 Financial Planning (ID#151) - sold 08/22

1 Principal firm, Melbourne West  ~$700,000 in fees (ID#122) - sold 05/22

1 Principal firm, Melbourne North  ~$300,000 in fees (ID#127) - sold 03/22

1 Principal firm, SE Gippsland ~$430,000 in fees (#SM401) - sold 01/22

1 Principal firm, Melbourne Inner South East ~$555,000 in fees (ID#123) - sold 12/21

1 Principal firm, Melbourne South East ~$1,360,000 in fees (ID#116) - sold 11/21

1 Principal firm, Regional NE Victoria ~$1,000,000 in fees (#SM427) - sold 11/21

1 Principal firm, Geelong region ~$495,000 in fees (ID#117) - sold 10/21

1 Partner firm, Melbourne CBD ~$1,250,000 in fees (ID#96) - sold 09/21

 1 Principal firm, Melbourne South East ~$540,000 in fees (ID#105) - sold 06/21

1 Principal firm, Melbourne Inner North ~$360,000 in fees (ID#413) - sold 06/21

1 Principal FP firm, Mornington (#SM403) - sold 07/20

Melbourne/National bookkeeping practice ~$1,100,000 in fees (#SM404) - sold 06/20

1 Principal firm, Melbourne Inner North ~$800,000 (#SM417) - sold 12/20 

1 Principal firm, Melbourne SE Suburbs ~$636,000 in fees (#SM402) sold 12/20

Phone: 03 9448 2308

Sydney: 903/50 Clarence St, Sydney NSW 2000 
Melbourne: Level 8, 805/220 Collins St, Melbourne VIC 3000 
Brisbane: 9/204 Alice St, Brisbane QLD 4000
Adelaide: 3/55 Gawler Place, Adelaide SA 5000

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