Practice Valuation
Accounting Practice Valuation: What Buyers Look for in 2025
Buyers in 2025 focus on recurring fees, EBITDA margins, and client retention when valuing accountancy practices. This article explains the key factors driving practice value today and how owners can prepare for a successful sale.
| September 12, 2025 | 2 min read
When a retiring partner shared his books with a buyer, the first question was: “How strong are your recurring fees and profits?” That moment highlighted what buyers really care about. Kingsman Partners helps practice owners see which valuation drivers matter most in 2025’s market.
Buyers now target accountancy firms with strong recurring revenue, clear profit, and growth potential. In early 2025, private capital showed rising interest, driven by the appeal of predictable income and fragmented markets ripe for consolidation (Farrer & Co, 2025).
Winning practices offer:
•A large share of recurring income—usually via compliance or subscription services.
•Healthy EBITDA margins, often used as a valuation base.
•A high client retention rate, reassuring buyers about future cash flow.
•Advisory services and efficient tech systems that add value beyond routine work.
•A succession plan or team structure that ensures continuity post-sale.
Recent deals show the market is rewarding firms with these traits. For example:
• AAB, a mid-market firm, was marketed at £250 million, reflecting strong performance and a pool of interested buyers (The Times, March 2025).
• Xeinadin, another firm, had an EBITDA of £60 million, suggesting a potential valuation north of £840 million at common multiples used by private equity investors (The Times, May 2025).
Valuation in 2025 isn’t just numbers. Buyers look first at chargeable fees (GRF), then at profit (EBITDA). They examine tech systems, client mix, and team resilience. Practices that score well here often fetch the best prices.
Understand what drives buyer interest—it gives owners an edge in negotiations. Kingsman Partners can help you highlight the right valuation levers and position your firm for a successful sale.
Saul Tiano – Partner at Kingsman Partners
If you’re considering a sale or acquisition, Kingsman Partners is here to help. Schedule your meeting here.
