When practice owners start exploring a sale, the first question is often the same: “What is my accountancy practice worth?” Valuation can feel complex, but in reality, it comes down to a few consistent methods, market benchmarks, and the current appetite of buyers.

Gross Recurring Fees (GRF) Valuation

The most common benchmark in the UK market is gross recurring fees (GRF). Buyers typically pay between 0.8× and 1.2× GRF, depending on the strength of the client base and how reliant it is on the owner (Accountants Growth Club).

In some cases, especially where practices have strong systems, niche specialisms, or desirable locations, multiples can stretch further. Some sales have achieved between 0.8× and 1.7× GRF (InforManagement) and others suggest a slightly narrower but still competitive 0.8× to 1.4× GRF range (Bains Watts).

EBITDA Multiples

Larger and more profitable firms are often valued on EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation). For smaller practices, multiples of 2–4× EBITDA are common. Mid-sized firms may achieve 4–6×, while highly scalable practices with recurring revenues and strong management teams can command 6–7× EBITDA (NAAB Consulting).

This difference in valuation approach reflects scale: GRF is simpler for smaller firms, but once a practice grows beyond £1m in fees, EBITDA multiples become more meaningful.

Market Conditions

The wider M&A market has a direct impact on what your practice might be worth. Despite economic headwinds, professional services remained one of the most active M&A sectors in 2024 (BDO).

In London alone, professional services accounted for 22% of all deal activity in 2024, showing sustained demand for accountancy firms even in uncertain times (Experian).

High-Value Examples

Some recent deals show how strong appetite can push multiples well above average. For instance, Anderson Anderson & Brown (AAB) was put on the market with a price tag of around £250m, reflecting multiples of up to 15× EBITDA in the sector (The Times).

Similarly, Evelyn Partners’ professional services arm was sold at roughly 14.5× EBITDA, demonstrating that private equity buyers are willing to pay premium valuations for scalable accountancy firms with strong growth prospects (Financial News London).

Bringing It Together

So, how much is your accountancy practice worth? For smaller firms, expect 0.8× to 1.2× GRF as a starting point, with scope for more if your systems, niche, or client mix stand out. For larger practices, especially those above £1m in turnover, multiples of 4–6× EBITDA are realistic, with premium practices attracting even higher.

Ultimately, valuation is both a science and an art: a blend of financial metrics, buyer appetite, and how well-prepared you are for a sale.