A partner once shared after selling: “My practice is worth what clients trust to come back every year.” That trust is GRF, or gross recurring fees. GRF is the regular annual income from existing clients. It matters because buyers rely on it to value accountancy practices. Kingsman Partners helps owners understand what their GRF means for the sale price.

GRF is the base fee income a practice earns annually from long-term clients. It may cover compliance work like accounts and tax returns. Buyers see it as a stable and predictable income stream (Financial Accountant, 2023).

In the UK, buyers often use a multiple of 0.8 to 1.7 times GRF when valuing a firm (InforManagement, 2024). That means a practice with £200,000 GRF may sell for £160,000 to £340,000 depending on client base and systems.

Accountants Growth Club recommends a range of 0.8 to 1.2 times GRF as a common valuation band (Accountants Growth Club, 2019). Practices with strong client trust, modern tech, or advisory services may reach the higher end of the range.

GRF matters because it gives buyers confidence in future earnings. It’s simple to calculate and easy to explain. Anything above GRF value is often goodwill or future potential. But GRF isn’t the full picture—factors like client churn, profit margin, or new work affect overall value.

If a firm relies mostly on one-off jobs, GRF won’t reflect its true value. That’s when buyers may use profit multiples like EBITDA instead. But for many smaller or stable practices, GRF remains the starting point.

GRF shows what your firm earns each year from clients. It helps indicate what buyers will pay and why. The clearer you are on your GRF and how it compares to market norms, the stronger your position in negotiation. Kingsman Partners can help explain where your GRF fits in today’s valuation landscape and guide your sale strategy.