Practice Valuation
What Multiple Do Accountancy Practices Sell For?
Curious what your accountancy practice could sell for? This guide explains current UK sales multiples, from GRF to EBITDA, and shows how Kingsman Partners helps owners understand the value of their firm.
Saul Tiano |
September 1, 2025 |
2 min read
Over the past decade, the landscape of accountancy practice valuations has undergone significant transformation. As a practice owner, understanding the current market multiples is crucial for making informed decisions about selling your firm. This article delves into the latest data on valuation multiples, providing insights into what accountancy practices are currently selling for in the UK market.
Understanding Valuation Multiples
Valuation multiples are financial metrics used to assess the value of a company relative to a specific financial performance indicator, such as earnings before interest, tax, depreciation, and amortisation (EBITDA) or gross recurring fees (GRF). These multiples offer a comparative measure to evaluate a firm’s worth in the marketplace.
Current Market Multiples for Accountancy Practices
Recent data indicates that accountancy practices are experiencing a range of valuation multiples:
•Gross Recurring Fees (GRF) Multiples: Accountancy practices are typically valued between 0.8 to 1.7 times their GRF. This range can vary based on several key elements, including the firm’s location, client base, profitability, and operational efficiency .
•Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) Multiples: The 2024 Small and Medium Enterprises Valuation Index reported a median EBITDA multiple of 5.4x, up from 5.0x in 2023, indicating improved investor confidence in the UK SME sector .
•Private Equity Transactions: In certain high-profile transactions, accounting firms have commanded significantly higher multiples. For instance, Xeinadin, a mid-market accounting firm, is preparing for a sale anticipated to exceed £800 million, with an EBITDA multiple potentially reaching 14x .
Factors Influencing Valuation Multiples
Several factors can influence the valuation multiples applied to accountancy practices:
• Client Base: A diverse and loyal client base can enhance a firm’s value.
• Profitability: Higher profit margins typically lead to higher valuation multiples.
• Operational Efficiency: Streamlined operations and effective management practices are attractive to potential buyers.
• Market Position: Firms with a strong reputation and market presence often achieve higher multiples.
• Economic Conditions: Broader economic factors, such as interest rates and market stability, can impact valuation trends.
Understanding the current valuation multiples for accountancy practices is essential for practice owners considering a sale. By staying informed about market trends and factors influencing valuations, owners can position their firms to achieve optimal sale outcomes. If you’re contemplating the
sale of your accountancy practice, consulting with experienced professionals can provide valuable insights tailored to your specific circumstances.
