The Problem: Success Without Succession
Allan and Tracey: two partners running a solid $5 million accounting practice in Sydney. On paper, everything looked successful. Allan owned 70%, Tracey held 30%, and they were serving their clients well.
But underneath the surface, Allan was wrestling with a question that keeps many successful practice owners awake at night:
"What happens when I'm ready to step back?"
At 65, Allan had built something valuable, but he'd never built a way out. He was trapped in the classic owner-operator dilemma: the practice was successful because of him, but it couldn't survive without him.
Here's the thing I've learned after 157 transactions: the most successful practices often have the worst succession plans. Why? Because when you're good at what you do, it's hard to imagine anyone else doing it.
The Realisation: Ownership vs. Income
When Allan and Tracey first came to us, they were asking the wrong question. They wanted to know: "How do we maximise the sale value of our practice?"
But after working through our strategic planning process, we discovered the real question was: "How do we maximise Allan's long-term financial outcome while ensuring the practice thrives?"
The breakthrough moment came when I asked Allan something that seemed counterintuitive:
"What if owning less of the practice could actually make you more money?"
That question changed everything.
The Strategy: Strategic Partnership Over Simple Sale
Instead of selling to the highest bidder, we identified a strategic merger partner who brought exactly what Allan and Tracey's practice needed for exponential growth:
✅ Financial services expertise to expand their service offerings
✅ Growth mindset leadership to scale operations
✅ Succession planning systems to ensure continuity
✅ Capital resources for strategic expansion
✅ Cultural alignment with their client-first values
The beauty of this approach? It solved everyone's problem simultaneously:
- Allan got his succession plan
- Tracey secured her future role
- The practice gained growth capabilities
- Clients received enhanced services
- The merger partner acquired established relationships
That's the Triple Win Philosophy in action.
The Numbers That Defy Logic
Here's where this story becomes extraordinary:
Before the Strategic Merger:
- Practice Revenue: $5 million
- Allan's Ownership: 70%
- Allan's Annual Income: Let's call it "X"
10 Years After the Strategic Merger:
- Practice Revenue: >$30 million (7X growth!)
- Allan's Ownership: 20%
- Allan's Annual Income: 11X his original amount
Think about that for a moment. Allan reduced his ownership from 70% to 20%, yet his income increased by 1,100%.
How is this possible?
Simple mathematics with extraordinary execution:
- 70% of $5M = $3.5M total value influence
- 20% of $35M = $7M total value influence
But the real magic wasn't in the math, it was in the multiplication effect of bringing in partners who could accelerate growth far beyond what Allan and Tracey could achieve alone.
The Growth Multiplier Effect
I've come to understand that the right strategic partnership doesn't just add capabilities, it multiplies them.
Here's what the merger partner brought that transformed everything:
Financial Services Integration
They didn't just offer accounting, they became a comprehensive financial hub for their clients. This increased client lifetime value and created multiple revenue streams.
Systems and Scalability
While Allan was brilliant with clients, the merger partner brought enterprise-level systems that could handle massive growth without proportional increases in overheads.
Growth Capital
Instead of reinvesting all profits back into slow organic growth, they had access to capital for strategic acquisitions and rapid expansion.
Succession Depth
The merger created multiple succession options, not just for Allan, but for the entire organisation. This attracted better talent and created long-term stability.
The Counterintuitive Truth About Ownership
Most practice owners believe: More ownership = More income.
But what Allan discovered is a principle I see repeatedly in my own current $13M roll-up:
Strategic ownership with the right partners beats total ownership with limited growth potential.
It's better to own 20% of something extraordinary than 70% of something ordinary.
The 10-Year Transformation Timeline
Year 1: Strategic planning and merger negotiation
Year 2-3: Integration and system optimisation
Year 4-6: Accelerated growth and service expansion
Year 7-8: Market leadership and premium positioning
Year 9-10: $35M revenue milestone achieved
Throughout this entire journey, Allan maintained his client relationships and industry reputation while watching his financial outcome grow exponentially.
Why This Approach Works
After facilitating similar transformations across 157 transactions, I've identified why strategic succession partnerships succeed where traditional sales fail:
- Aligned Incentives
Everyone wins when the practice grows, so everyone works toward the same goal.
- Retained Expertise
The original owners stay involved, ensuring client relationships and institutional knowledge are preserved.
- Enhanced Capabilities
New partners bring resources and skills that unlock growth potential the original owners couldn't access alone.
- Risk Distribution
Instead of betting everything on a single buyer, risk is shared among committed partners.
- Legacy Protection
The practice continues to thrive, protecting the reputation and relationships built over decades.
The Question Every Practice Owner Should Ask
Allan's story raises a fundamental question that every successful practice owner needs to consider:
"Am I optimising for my ownership percentage or for the firms lifetime financial outcome?"
The difference between these two approaches can literally be worth millions of dollars.
Looking Back: Allan's Perspective Today
When I catch up with Allan now, he often tells me: "I thought I was successful before, but I didn't understand what was possible until I stopped trying to do everything myself."
He's not just financially better off, he's working fewer hours, serving better clients, and building a legacy that will outlast his direct involvement.
That's what strategic succession planning can do when it's executed with the right partners and the right structure.
The Lesson: Engineering vs. Hoping
Most practice owners approach succession with hope: "I hope someone will pay what my practice is worth when I'm ready to retire."
But Allan and Tracey approached it with engineering: "Let's structure a partnership that creates exponential value for everyone involved."
The difference? Allan retired into abundance instead of just adequacy.
Your Succession Reality Check
If you're reading this and thinking about your own succession plan, ask yourself:
- Do you have a succession plan that creates value, or just transfers it?
- Are you optimising for ownership percentage or financial outcome?
- Could the right strategic partner multiply your practice's value faster than you can alone?
- What's the real cost of trying to maximise everything by yourself?
I've learned this truth: The best succession plans don't just protect what you've built, they accelerate it beyond what you thought possible.
Your Next Step
Allan and Tracey's transformation didn't happen by accident. It was engineered through strategic planning, careful partner selection, and expert guidance through every step of the process.
If their story resonates with you, if you're wondering whether there's a better path than traditional sale or slow decline, let's explore what strategic succession could look like for your practice.
Our Mergers Guidebook PDF walks you through the frameworks we used with Allan and Tracey, plus insights from dozens of similar transformations across Australia.
Because here's what I know: Your succession plan shouldn't just be your exit strategy. It should be your acceleration strategy.
Ready to explore how strategic succession could multiply your practice's value? Download our Mergers Guidebook PDF and discover the framework that's transformed dozens of practices across Australia.
Download our Mergers Guidebook PDF
About the Author
John Peterson has facilitated 157 successful accounting practice transactions over 25 years, specialising in strategic mergers and succession planning. He's currently executing his own $13M accounting practice roll-up across 5 Australian cities, proving that the right partnerships can multiply value exponentially. His Triple Win Philosophy ensures that every transaction benefits all parties, buyers, sellers, and clients.
