Professional services businesses in Alicante: buying, selling and valuation

A professional practice is ultimately sold on the trust of its clients, and that trust usually rests with people. That is why the big question for advisory firms, gestorías (administrative and tax services firms), engineering firms or agencies is how much of the client base will stay when the founding partner retires. If clients already deal day to day with other professionals in the team, the transition is much more credible.

Recurrence sets some practices apart from others. The fixed monthly service agreements (igualas) of a tax, accounting or payroll advisory firm resemble a subscription and are valued as such; one-off engineering, architecture or advertising projects depend on winning new assignments. Separate recurring from one-off work in your accounts and show the average length of client relationships.

Illustrative example: an advisory firm with hundreds of small clients on fixed monthly agreements, served by a stable team using shared management software, is easier to transfer than a practice with a few large clients who only talk to the principal, even if both have the same turnover.

Given the nature of the sector, the sale usually includes a handover period with the seller and, often, a part of the price linked to clients staying. Compliance with data protection regulations regarding client information, professional indemnity insurance and documented contracts or engagements also carry weight.