Practice Valuation
How Do You Value An Accountancy Practice?
Thinking about selling your accountancy practice? Understanding its true value is key. This guide explains UK market multiples, what drives value, and how Kingsman Partners can help you get a clear, realistic view of your firm’s worth.
| August 31, 2025 | 3 min read
We’ve seen over the past 10 years how accountancy practices can be undervalued, overvalued, and everything in between. As a practice owner, we know how confusing valuations can feel. As a buyer, I’ve learned what really drives value in a firm. At Kingsman Partners, we focus on combining that experience with market insight to give owners a clear and realistic view of what their practice is worth.
Why Valuation Matters
Knowing your firm’s worth shapes every decision. It helps with succession planning, growth targets, and preparing for exit. Without it, owners risk underselling years of work or setting prices that stall deals.
The Current Market
The UK accountancy market is active. In 2024, M&A in professional services grew by 9% year-on-year, with accountancy firms taking a large share (BDO, 2024).
Practices under £2m in fees remain popular with buyers. The reason is clear: stable recurring revenue. Most deals are priced using gross recurring fees (GRF). In today’s market, typical multiples fall between 0.8x and 1.2x GRF (Accountants Growth Club, 2025). Larger firms with strong niches may push higher, while smaller generalist firms often sit at the lower end (InforManagement, 2024; Bains Watts, 2025).
Key Drivers of Value
When I value a practice, I don’t stop at fee income. Buyers want confidence that the business is secure and scalable.
Factors that make the difference:
- Client quality – Are clients profitable, loyal, and diverse?
- Retention – Do clients stay three years or ten?
- Team structure – Does the firm rely on the owner, or run independently?
- Technology – Are systems modern and cloud-based, or outdated?
- Location – Regional demand still plays a role.
For example, a £1m GRF firm with low owner reliance and cloud systems might reach 1.3x–1.4x GRF. The same firm with weak retention and high owner reliance may only see 0.9x.
Some firms with over £500,000 in adjusted EBITDA (after partner pay) can attract private equity buyers paying 6–7x EBITDA multiples (ICAEW, 2024).
Getting It Right
I often meet owners who’ve been given vague or inflated valuations by brokers. Numbers that feel good but aren’t real. That’s a dangerous path if you’re planning to sell.
An accurate valuation blends financials with market knowledge and real deal experience. That’s where Kingsman Partners can help. We use first-hand experience of running and acquiring firms, backed by current market data, to give owners a clear view of what their practice is worth.
Knowing your true value gives you control. It lets you plan, prepare, and secure the best outcome when you sell. If you’d like to find out where your practice stands today, get in touch with Kingsman Partners.
