Preparing for Sale & Maximising Value
How to prepare your practice for sale (and maximise value)
Selling your practice takes planning. Discover how proper accountancy sale preparation helps you attract buyers, increase multiples, and secure maximum value.
| October 6, 2025 | 5 min read
Buyers aren’t only purchasing client lists or revenue. They’re investing in the stability and future of a practice. Proper accountancy sale preparation makes the business easier to assess, more attractive, and often more valuable.
In 2024, UK professional services M&A activity grew by 9% year on year, with accountancy practices representing a significant proportion of deals. Firms under £2m in recurring fees remain especially popular due to manageable integration and reliable revenues. That means the pool of buyers is there—but the competition between sellers is rising.
Owners who prepare in advance are best placed to achieve premium multiples, avoid prolonged negotiations, and reduce the risk of a collapsed deal.
Step 1: Get Your Financial Records in Order
Buyers want clarity and transparency. Clean, consistent financials inspire confidence.
• Accurate accounts: At least three years of clear records, ideally audited.
• Adjusted EBITDA: Ensure partner drawings, one-off costs, and discretionary expenses are separated.
• Recurring vs non-recurring revenue: Buyers pay more for stable recurring income streams.
A recent survey found that practices with well-documented financials saw 20% faster deal completions (Accounting Today, 2024). In contrast, disorganised records extend due diligence and invite discounted offers.
Step 2: Strengthen Client Retention
Clients are the heart of a practice’s value. High churn reduces offers. Strong retention increases multiples.
• Aim for 80%+ client retention over three years.
• Diversify your client base—overreliance on one or two large clients creates risk.
• Highlight recurring service contracts such as payroll or VAT compliance.
According to Poe Group Advisors, 2025, firms with low client churn regularly command multiples at the top of the 1.0–1.4x GRF range. Buyers pay for reliability.
Step 3: Build a Team That Runs Without You
Many smaller practices are owner-reliant. That creates risk. Buyers want firms that continue to operate smoothly after a sale.
•Delegate responsibilities before marketing the firm.
•Ensure senior staff manage client relationships.
•Document processes to reduce key-person risk.
A survey by ICAEW, 2024 found that over 60% of failed practice sales were linked to overdependence on the founder. Demonstrating independence is key in accountancy sale preparation.
Step 4: Invest in Technology
Cloud adoption has transformed practice valuations. Buyers see tech-enabled firms as scalable, efficient, and lower risk.
• Use cloud accounting platforms like Xero, QuickBooks, or Sage.
• Implement workflow and practice management systems.
• Automate repetitive tasks where possible.
Research shows that 70% of firms adopting cloud technology improved client retention and grew revenue faster (Sage, 2024). For buyers, this signals future stability.
Step 5: Review Your Client Mix
Not all revenue is equal. A firm serving high-growth sectors or long-standing SMEs attracts stronger offers.
• Identify reliance on low-margin clients and consider reshaping the portfolio.
• Secure multi-year contracts where possible.
• Prepare reports showing industry diversification.
According to Bains Watts, 2025, practices with a niche—such as healthcare or professional services—regularly achieve multiples 10–15% higher than generalist firms.
Step 6: Timing Your Sale
The market, your firm’s performance, and tax policy all affect timing.
• Market conditions: Buyer appetite is strong, but competition is rising.
• Tax changes: Business Asset Disposal Relief (BADR) is currently 10% but will rise to 14% in April 2025 and 18% in April 2026, almost doubling exit tax.
• Performance cycles: Aim to sell after two or three years of stable growth.
A £1m sale today nets £900,000 after tax. By 2026, that falls to £820,000. Timing alone can cost—or save—tens of thousands.
Step 7: Present Your Practice Professionally
Presentation matters as much as financials. Buyers want a clear, compelling picture.
• Prepare an information memorandum outlining financials, staff, and growth opportunities.
• Highlight unique selling points, such as niche expertise or tech adoption.
• Keep branding, website, and marketing materials updated.
First impressions count. Well-presented firms see faster offers and stronger valuations (Retiring Accountant, 2024).
Step 8: Avoid Common Pitfalls
Owners often fall into traps that erode value.
• Overvaluing the firm and scaring off buyers.
• Rushing into deals without preparation.
• Failing to disclose liabilities early.
• Not considering cultural fit for staff and clients.
A 2024 Cowgills report highlighted that over 30% of UK practice deals collapse due to mismatched expectations between buyer and seller.
Step 9: Build a Realistic Timeline
Selling isn’t instant. Proper accountancy sale preparation often takes 12–18 months.
• 6 months: Organise financials, review clients, and delegate tasks.
• 3–6 months: Market the firm, negotiate offers, and conduct due diligence.
• 3–6 months: Complete legal, regulatory, and transitional steps.
Planning early avoids fire-sales and improves exit value.
Step 10: Work with Experienced Advisors
Specialist advisors can bridge gaps, provide realistic valuations, and structure deals that protect owners. This is where Kingsman Partners supports accountancy practice owners. Their team combines direct ownership experience with M&A expertise, ensuring that preparation turns into real value at exit.
Final Thoughts
The best sales don’t happen by accident. They’re the result of careful accountancy sale preparation—tidy financials, loyal clients, independent teams, and smart timing. Add strong presentation and the right advisors, and owners give themselves the best chance of securing maximum value.
If you’re considering a sale in the next few years, now is the time to prepare. Reach out to Kingsman Partners to get a tailored valuation and advice on your next steps.
