Selling Your Practice
Sell Accountancy Practice: Should You Sell Now or Wait?
Selling an accountancy practice is all about timing. With tax rises looming and strong buyer demand today, waiting could reduce your net return. Discover the factors that decide whether now is the right time—or if it pays to hold.
| October 3, 2025 | 5 min read
Many owners wonder if now is the right time to sell an accountancy practice. The answer depends on market demand, tax changes, and your firm’s performance.
The Dilemma Owners Face
It’s not unusual for practice owners to keep delaying. They think one more year of growth will add value. Or they hope to time the “perfect” market peak. Yet deals often fall through not because of numbers, but because of mismatched timing.
Take the story of a mid-sized firm in Manchester. The partners planned to sell in 2022, but they delayed in hopes of a higher multiple. By 2023, staff turnover and regulatory pressure reduced profits. Offers dropped by 15%. Their wait cost them hundreds of thousands.
Timing is not just about the numbers today. It’s about where those numbers are headed tomorrow.
The Current M&A Market
Buyer appetite for accountancy practices remains strong. In 2024, professional services M&A in the UK grew 9% year-on-year. Smaller firms with fees under £2m are especially attractive because of steady recurring revenue and easier integration.
Multiples vary, but typical deals land between 0.8x and 1.4x Gross Recurring Fees (GRF) depending on size, client mix, and geography (Poe Group Advisors, 2025). Specialist firms in audit or tax advisory sometimes achieve higher. Meanwhile, private equity is targeting larger regional firms, driving competitive offers.
Delaying may not mean “missing the market,” but demand today is undeniably healthy.
Tax Changes That Affect When You Sell Your Accountancy Practice
Tax is a key driver in exit planning. The UK’s Business Asset Disposal Relief (BADR) currently lets qualifying owners pay 10% tax on gains when selling. But changes are on the horizon.
From 6 April 2025, the BADR rate will rise to 14%, and by 6 April 2026, it will rise again to 18% (BDO, 2025). That nearly doubles the tax liability on disposal within two years.
To put this in perspective:
• A £1m sale in 2024 leaves £900,000 after tax.
• By 2026, the same sale leaves £820,000.
That £80,000 gap could cover years of pension contributions or the cost of succession planning. Owners waiting beyond 2026 may face an even steeper climb.
Valuation Drivers Buyers Care About
It’s not just about when you sell—it’s about what you sell. Buyers look for strong, stable practices. Multiples rise when:
• Clients are loyal and profitable. Firms with churn under 10% attract higher offers.
• The practice runs without the owner. Reliance on one partner lowers buyer confidence.
• Systems are cloud-based. 77% of UK practices now use cloud platforms, making laggards less attractive (Xero, 2024).
• Revenue is stable or growing. A steady three-year track record builds trust.
If your practice ticks these boxes, the argument for selling sooner rather than later is stronger.
Risks of Selling Too Soon
Selling early has drawbacks. You may miss out on growth. If your practice just invested in new cloud systems, for example, the payoff may not yet be visible in revenue.
You might also leave money on the table if multiples climb higher. With strong M&A demand projected for 2025 (Accountancy Age, 2024), some owners argue that waiting could boost offers.
But this strategy works only if the practice is healthy and the owner is willing to continue running it.
Risks of Waiting Too Long
The bigger risk is waiting too long. Markets shift, tax bills rise, and personal energy wanes. Owners who hold on past their peak often find buyers offering less.
A 2024 survey by Cowgills found that 41% of accountancy partners over 55 had no formal exit plan (Cowgills, 2024). Many risk being forced into sales on unfavourable terms due to retirement, illness, or burnout.
Client retention can also weaken over time. Buyers may view long-standing but ageing client bases as risky. If a third of clients are near retirement, revenue forecasts lose appeal.
Market Timing vs Personal Timing
The right time to sell blends market timing with personal readiness. Even if demand is high, if the owner isn’t ready, deals may fall apart.
Personal factors include:
• Retirement goals.
• Health.
• Appetite for continued stress.
• Family succession plans.
In many cases, it’s better to sell when running the firm still feels manageable. That way, the sale is strategic, not reactive.
Seasonal Timing Matters Too
Surprisingly, seasons play a role. Winter (January–February) is often busy as buyers plan ahead of tax season. Spring and summer allow for due diligence and preparation. Autumn is traditionally the busiest closing period, with buyers aiming to complete before year-end (Poe Group, 2025).
Delaying by “just one more season” can push a deal into a quieter cycle, slowing momentum.
Building a Sale-Ready Practice
Whether selling now or later, preparation is everything. Owners should:
•Keep management accounts up to date.
•Reduce reliance on the owner.
•Improve client retention strategies.
•Build an information pack for buyers.
Even if you don’t sell immediately, these steps make the practice stronger and more profitable.
Why Many Owners Choose Now
Looking at the data, many owners are leaning toward selling sooner. Strong buyer demand, looming tax rises, and active private equity all point to favourable conditions.
Those who wait risk shrinking net proceeds due to higher tax and possible market cooling. Those who act now often find multiple interested buyers, which strengthens negotiating power.
The Role of Experienced Advisors
Making the choice isn’t easy. That’s where advisors with real practice ownership experience matter. Kingsman Partners has walked this path, guiding owners on whether to act now or wait, always with a focus on maximising value.
Final Thoughts
There’s no perfect time to sell an accountancy practice. But there are smart times. With tax changes ahead and buyer demand strong, selling sooner may leave more in your pocket than waiting.
If you’d like clarity on whether now is right for you, reach out to Kingsman Partners for tailored advice.
Alfie Charles – Partner at Kingsman Partners
If you’re considering a sale or acquisition, Kingsman Partners is here to help. Schedule your meeting here.
