Some practice owners hold on too long. Others sell too early. Both risk losing value. Timing a sale well means looking at the market, your firm’s performance, and changes in tax law. With Business Asset Disposal Relief (BADR) set to rise over the next two years, owners need to plan ahead.

Watch Market Demand

Buyer appetite is strong. In 2024, professional services M&A rose by 9% year on year, with accountancy making up a large share (BDO, 2024). Firms under £2m in recurring fees are especially attractive, as they are easier to integrate and carry stable revenue. Cloud-based firms with low client churn often see offers at the higher end of multiples. Larger firms with specialist services, like audit or tax advisory, are also attracting private equity buyers (Bains Watts, 2025).

Plan Around Key Tax Changes

Tax can change the value of a deal overnight. BADR currently allows business owners to pay a reduced 10% rate on capital gains when selling their business. But from 6 April 2025, the rate will rise to 14%, and from 6 April 2026, it will increase again to 18%—almost doubling the tax burden on disposals within two years (BDO, 2025). That means a practice sold for £1m today would leave £900,000 after tax. By 2026, the same deal leaves only £820,000. For many owners, this difference alone may shape the decision on when to sell.

Align with Performance Peaks

The best time to sell is when the practice is performing well. Buyers pay premiums for firms with healthy profits, low reliance on one partner, and clear systems. A run of stable growth over two to three years, strong staff retention, and high client loyalty are all signs the practice is at its peak. Selling during or just after a good performance cycle helps attract more offers and stronger multiples. Waiting until revenue slips often reduces buyer confidence and drags down the price.

Be Mindful of Regulation and Personal Plans

Market regulations can also drive timing. For example, shifts like Making Tax Digital have created uncertainty for smaller firms, leading some owners to sell early rather than invest in new systems (Retiring Accountant, 2024). At the same time, personal goals matter. If the energy to keep running the practice is fading, or retirement is near, planning a sale in a stable market is wiser than waiting until forced by circumstances.

Use Seasonal Trends

Timing isn’t just about the year—it can also come down to the season. Winter, especially January to February, often sees high buyer activity as firms prepare ahead of tax season. Spring and summer are often used for preparation—tidying accounts, formalising processes, and building an information pack for buyers. Autumn tends to be the busiest closing period, with many deals finalised between September and November, when buyers want firms ready before year-end (Poe Group, 2025).

Know the Risks of Delay

Delaying a sale comes with two big risks—losing market value and facing higher tax bills. As mentioned earlier, the BADR increase alone could cost tens of thousands on exit. A £1m sale today means £100,000 in tax. By 2026, the bill rises to £180,000 (Cowgills, 2025). Add to that the risk of client churn, staff leaving, or regulatory changes, and waiting can become costly.

Selling at the right time blends market demand, tax efficiency, and firm readiness. Kingsman Partners works with practice owners to identify the best moment and secure maximum value while conditions remain favourable.