If you’ve been keeping a close eye on the market lately, you’ve probably noticed that the landscape for selling an accountancy practice in the UK is shifting. It’s April 2026, and for many firm owners, the question isn’t just "What is my practice worth?" but rather "Is the window of opportunity starting to close?"
I’m Peter Watson, and I spend my days talking to firm owners just like you: the retiring accountant looking for a graceful exit, and the ambitious buyer looking for their next practice acquisition. Lately, those conversations have taken on a new level of urgency.
For the last decade, we’ve seen a steady climb in accountancy practice valuations in the UK. But as we sit here in 2026, there’s a growing sense that we’ve reached: or perhaps just passed: the summit. If you’re considering a practice sale, understanding why this year is a critical turning point is essential for protecting the value you’ve spent a lifetime building.
1. The 2025 "Peak" and the Leveling of Multiples
Last year was, by most accounts, a record-breaker. Data from across the industry suggests that accountancy practice valuations reached an all-time high in 2025. We saw a flurry of deals, driven largely by aggressive consolidation and an influx of private equity money.
In 2025, we were seeing multiples for smaller practices (£1m–£8m) hitting staggering heights of 14x to 15x EBITDA. To put that in perspective, just a few years ago, a firm with £2m in recurring fees might have expected closer to 5x or 6x EBITDA.
However, as we move through 2026, that upward trajectory is flattening. While quality firms are still commanding great prices, the "frenzy" is subsiding. Buyers are becoming more selective, moving away from purely volume-based acquisitions and looking much more closely at the underlying quality of the client base. If you've been waiting for the "perfect" moment to get the highest possible practice valuation, the data suggests that we are currently on a plateau rather than a rising slope.
2. The MTD "Cliff Edge" – April 2026 is Here
We’ve talked about Making Tax Digital (MTD) for years, but as of this month: April 2026: it is no longer a "future problem." The mandation for those with gross income exceeding £50,000 has arrived.
This is a critical year because it marks the start of a significant operational shift for many firms. The transition from annual processes to quarterly reporting is a massive undertaking. For a retiring accountant, the prospect of overhauling internal systems, retraining staff, and "onboarding" reluctant clients to new software is, frankly, exhausting.
Acquirers know this. They are looking at accountancy practices for sale and asking: "How much of this work is already done?" If your firm hasn't fully embraced the tech stack required for MTD, your valuation will likely take a hit. Buyers don't want to pay top dollar for a firm only to inherit a massive administrative and technological headache. 2026 is the year where "MTD readiness" becomes a primary driver of accountancy firm GRF multiples.
3. Shifting Private Equity Strategies
For a long time, private equity (PE) firms were hungry for any and every accountancy practice merger they could find. They were the engine behind the high multiples we’ve seen. But in 2026, we are seeing a strategic pivot.
Many of the larger "platform" firms, backed by PE, are now shifting their focus toward the larger end of the market. They are looking for "big fish" to bolster their regional presence, which means the competition for sub-£1m or even sub-£5m firms isn't as fierce as it was eighteen months ago.
When there are fewer bidders at the table, prices naturally soften. As an accountancy practice broker in the UK, I’m seeing that while there are still plenty of accountancy practice buyers, they are more disciplined. They aren't just buying fees anymore; they are buying efficiency and future-proofed business models.
4. The Impact of FRS 102 and Regulatory Burden
It isn't just MTD that’s changing the game. As of January 1, 2026, the FRS 102 Section 20 amendments regarding off-balance sheet financing have come into full effect. This, alongside ever-tightening AML (Anti-Money Laundering) requirements, means that the cost of compliance is rising.
For a smaller bookkeeping business for sale or a traditional tax practice, these overheads eat into the profit margins. When I conduct a practice valuation, I have to look at the "normalized" profit. If your compliance costs are skyrocketing because you haven't automated your workflows, your bottom line looks less attractive to a buyer.
2026 is a critical year because the gap between "modern, efficient firms" and "traditional, manual firms" is widening into a chasm. The former are still seeing high demand, while the latter are finding it increasingly difficult to justify the multiples of 2025.
5. The 2028 Threshold Shadow
Finally, we have to look at what's coming next. While the £50k MTD threshold is the big news for April 2026, we know the £30k and £20k thresholds are looming in 2027 and 2028.
Smart buyers are already modeling their acquisitions based on the 2028 landscape. They are looking at your client list and identifying which clients will become "unprofitable" or "high-maintenance" under the lower thresholds.
If you are planning to sell your practice, doing so in 2026 allows you to sell while the "bulk" of the MTD work is still a future obligation for the buyer. If you wait until 2028, you may find that a significant portion of your recurring fees are viewed as a liability rather than an asset.
Why a Personal Approach Matters More Than Ever
In a market that is potentially peaking, you cannot afford to be just another "listing" in a call center database. You might see names like Retiring Accountant or Vivian Sram popping up in your searches, and while they have their place, the market in 2026 requires a more surgical, personal touch.
When you work with me at Bains Watts Ltd, you aren't dealing with a junior account manager. You are dealing with me, Peter Watson, directly. I don't use call centers, and I don't treat your life’s work like a commodity.
Whether you want to buy a practice to scale up or you're ready to sell your accountancy firm and head for the golf course, you need a broker who understands the nuances of 2026: the tech debt, the MTD pressures, and the reality of EBITDA vs. GRF multiples.
Is It Time for Your Practice Valuation?
The "peak" doesn't mean values are crashing: it just means the easy gains are over. To get a premium price in 2026, you need a strategy, a clean set of books, and the right representation.
If you’re wondering what your firm is worth in today’s climate, let’s have a confidential, no-obligation chat. I can help you navigate the complexities of accountancy mergers & acquisitions and ensure you get the exit you deserve.
Ready to discuss your exit strategy or your next acquisition?
Book a 1-to-1 Discovery Call with Peter Watson here
2026 is proving to be the most significant year for the profession in a generation. Don't leave your legacy to chance. Let’s make sure you’re on the right side of the valuation curve.
For more information on the current market trends and how we can help you with your practice sale or acquisition, visit us at https://bainswatts.co.uk.