When practice owners talk about selling, the same question comes up: “Will buyers pay me for fees or profit?” That split between fees (GRF) and profit (EBITDA) is what drives practice value.

GRF (Gross Recurring Fees) is the fee income expected each year from clients. It covers work like accounts and tax returns. In the UK, buyers typically value firms at 0.8 to 1.7 times GRF depending on client quality and systems (InforManagement, 2024).

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) shows operational profit. Its multiple gives a clearer view of cash generation. ACCA shares that private equity buyers now value practices using 4 to 12 times EBITDA (ACCA Multipliers guide).

For example, Xeinadin—a mid-market firm—has an EBITDA around £60 million. At 14× EBITDA, its sale could value over £840 million (The Sunday Times, 2025).

GRF offers a simple, predictable valuation method. It’s easy to calculate and widely used for small practices. However, EBITDA multiples can better reflect true profitability and growth, especially for larger or modern firms.

A practice with strong systems, advisory income, and high profit margins may fetch a higher value based on EBITDA. In contrast, a smaller firm with steady fees but lower profit may see its value align more with GRF.

In reality, buyers often look at both. GRF sets a baseline; EBITDA can push the value higher when profit is strong. The right multiple depends on firm size, client mix, cost structure, and future earnings potential.

Understanding how GRF and EBITDA multiples work—and which applies to your firm—gives you the edge in pricing your sale. Kingsman Partners can help you interpret both multiples and shape a realistic valuation strategy.