M&A for professional services facing succession and consolidation.
Australian professional services is being reshaped by two converging forces: a generational succession event in legal, accounting and consulting, and active consolidation by mid-tier firms, holding companies, and PE platforms across wealth management, insurance brokerage, and agency networks. Novastrone advises professional services owners and acquirers through these moments — where partner relationships, brand equity, and client trust all have to survive the transition intact.
Sectors we serve.
From law and consulting to wealth management and agencies — the structural mechanics, buyer pool, and valuation method change with every sub-sector.
- Law firms
- Consulting — management, IT, strategy
- Engineering firms
- Architecture firms
- Marketing & advertising agencies
- Staffing & recruiting
- Insurance brokerages
- Wealth management — AFSL-holding
- Executive search
- Public relations
- Tech-enabled professional services
- Specialist boutiques
What's driving M&A right now.
Succession on one side, capital consolidation on the other — and a steady premium attached to tech-enabled or specialist capability.
- Succession-driven M&A in legal and accounting as founder cohorts exit.
- PE entry into wealth management and insurance brokerage at significant scale.
- Holding-company and agency-network roll-ups in marketing, advertising and recruiting.
- International firms acquiring Australian beachheads (consulting and engineering particularly).
- Tech-enabled professional services attracting growth capital and strategic acquirers.
- Specialist boutiques being acquired by mid-tier firms looking for capability.
What buyers actually pay for.
In professional services, the line between the firm and the people is the firm. Buyers pay for the things that survive the partner walking out the door.
- Recurring or repeatable revenue — retainers, panel appointments, ongoing engagements
- Partner and fee-earner productivity and leverage
- Client diversification — no single client > 15–20% of revenue
- Brand strength in a defined niche
- Tech stack and IP — especially in consulting and marketing
- Tenure and retention of fee-earners and partners
Specialist or recurring-revenue models command the premium — generalist practices sit at the lower end.” The specialist premium
Common structures, and the traps that come with them.
Earn-outs are universal in this sector — the structure of the earn-out is where the deal is actually won or lost.
- Earn-outs are almost universal (24–36 months tied to retention and revenue).
- Equity rollover and partner buy-in structures are common.
- Vendor finance for partner-track buy-outs.
- Restraint of trade and non-compete clauses are material to value.
- Multi-stage earn-outs tied to specific revenue or client retention milestones.
- Key-person risk where the founder is the rainmaker.
- WIP and accrued income valuation disputes.
- Client losses during transition — clients who stay because of one specific partner.
- Trust account or regulatory exposure (legal and financial advice).
- Pre-existing professional indemnity claim exposure.
Start a confidential conversation.
Whether you're a partner planning your exit, or a firm building through acquisition — a confidential first call is the right place to begin.
Request a confidential consultation