If you have been keeping an eye on the market lately, you’ll know that the last couple of years have been a bit of a whirlwind for accountancy practice valuations in the UK. We’ve seen a surge in Private Equity (PE) money, a race for consolidation, and multiples that: quite frankly: we haven't seen in decades.
But as we sit here in May 2026, the conversation in the staff rooms and partner meetings has shifted. The question I’m getting asked more than any other right now is: "Peter, have we hit the ceiling?"
It’s a fair question. Whether you are a retiring accountant looking to hang up the boots or a partner looking for a strategic accountancy practice merger, timing is everything. After years of record-breaking accounting firm GRF multiples, the data suggests we are at an inflection point.
I’ve spent my career as an accountancy practice broker, helping owners navigate the complexities of a practice sale. At Bains Watts Ltd, I don’t believe in call centers or automated portals. I believe in personal, one-to-one service. And from where I’m standing, 2026 is the most critical year for your exit strategy.
Here are five reasons why the window of maximum value might be closing, and why 2026 is the year to make your move.
1. Multiples Have Hit a Historic High-Water Mark
For a long time, the standard accountancy practice valuation was a simple calculation based on Gross Recurring Fees (GRF). We all remember the days when 1x or 1.1x was the gold standard. However, 2024 and 2025 saw a dramatic shift.
With the influx of Private Equity capital, we saw accounting firm GRF multiples climb to 1.4x, 1.5x, and in some specialized cases, even higher. On an EBITDA basis, some mid-tier firms were fetching 14x to 15x.
However, the consensus among experts: and what I am seeing on the ground: is that these valuations have peaked. The "cheap money" era is behind us, and while demand for accountancy practices for sale remains high, buyers are becoming more disciplined. If you are waiting for 2x GRF to become the new normal for a standard compliance practice, you might be waiting a long time.
2. The MTD 2028 Threshold is Casting a Long Shadow
We can't talk about selling an accountancy practice in the UK without talking about Making Tax Digital (MTD). While 2026 feels like we have breathing room, the 2028 threshold lowering to £20,000 is already influencing accountancy practice buyers.
Buyers in 2026 are looking at your client list and asking: "How much work will it take to get these clients ready for 2028?" If your firm is still heavily manual or relies on "shoebox" clients, your practice valuation will take a hit the closer we get to that deadline.
Right now, in 2026, you still have the "modernisation premium." You can sell a practice that is "MTD-ready" for a top-tier price. If you wait until 2027, you aren't selling a business; you’re selling a project. Smart accountancy practice buyers don't want to buy a massive administrative headache. They want a streamlined, digital-first recurring fees engine.
3. Private Equity Focus is Moving Up-Market
The massive wave of accountancy mergers & acquisitions driven by Private Equity has been incredible to watch. Nearly 20 of the UK’s top 60 firms are now PE-backed. But here is the catch: as these "consolidators" get bigger, their appetite for smaller, "lifestyle" practices changes.
In the early stages of a consolidation cycle, buyers grab everything. In the mid-to-late stage: where we are now: they start looking for "bolt-ons" that offer specific niches or geographic advantages. If you are looking to sell your practice, you want to be part of the wave, not the foam left behind.
As a specialist accountancy practice broker UK, I’ve noticed that while the "Big Portals" (like those you might find on Retiring Accountant or Vivian Sram) list hundreds of firms, the real deals are happening through personal introductions. In 2026, being a "small fish" in a market that is obsessed with "big scale" means you need a personal advocate to ensure you aren't undervalued.
4. Margin Compression and the "Talent Tax"
Let’s be honest: running a practice in 2026 is harder than it was in 2021. Salary expectations for qualified seniors and managers have skyrocketed. The accountancy profession in the UK is facing a persistent talent shortage, which means your biggest overhead: staffing: is likely eating into your margins.
When we perform an accountancy practice valuation, we look at the health of the bottom line, not just the top-line fees. If your fee increases aren't keeping pace with wage inflation, your practice is technically becoming less valuable every month.
Selling in 2026 allows you to exit while your recurring fees are still showing growth, before the full weight of the "talent tax" squeezes your profitability further. Many accountancy practice buyers: especially larger firms with offshore processing hubs: can absorb your clients and solve the staffing issue instantly. That synergy is what drives a high practice acquisition price.
5. The Economic "Fee Sensitivity" Factor
We are seeing a shift in client behavior across the UK. With slower economic growth, small business owners are becoming more "fee sensitive." They are questioning their annual bills and looking for more value.
If you are a retiring accountant, the last thing you want to do is spend your final two years in practice fighting with clients over fee increases just to keep your valuation stable. By starting the practice sale process now, you can hand over those relationships to a buyer who has the tech stack to offer more "advisory" services, justifying the fees and securing your payout.
Whether it’s a bookkeeping business for sale or a full-service tax practice, the "goodwill" of your clients is your most valuable asset. That goodwill is at its highest when the transition is planned, not rushed because of a market downturn.
Why a Personal Approach Beats a "Big Portal"
You might see ads for accountancy practices for sale on various websites, but selling a business you’ve spent decades building isn't like selling a car on Autotrader. You need a partner who understands the nuance of accountancy mergers.
When I work with a client, it’s not about just "finding a buyer." It’s about finding the right buyer. Is it a young duo looking for their first practice acquisition? Or a regional powerhouse looking for an accountancy practice merger?
At Bains Watts, I handle the negotiations personally. I don't pass you off to a junior or a call center. I understand the accountancy practice valuations UK market inside and out, and I know exactly what accountancy practice buyers are looking for in 2026.
If you are even slightly considering an exit, don't wait for the market to tell you it’s too late. Let’s have a confidential, no-obligation chat about what your practice is worth today and how we can secure your legacy.
Ready to discover your practice's true value?
The market in 2026 is moving fast. Don't leave your exit to chance or an automated valuation tool. Get the expert, personal guidance you deserve.
Book a confidential 1-to-1 call with Peter Watson here
Related Reading & Resources:
- ICAEW: Selling your practice – what you need to know
- GOV.UK: Making Tax Digital for Income Tax
- ACCA: Practice Connect – Buying and Selling
Peter Watson is the Director of Bains Watts Ltd and a leading expert in the sale, purchase, and valuation of accountancy practices across the UK.