If you’ve 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 anyone looking to sell an accountancy practice in the UK. We’ve seen a surge in interest, a flood of private equity money, and valuations that frankly made some of us blink twice.
But as we sit here in May 2026, the conversation has changed. I’ve spent the morning talking to three different practice owners, and the question is always the same: "Peter, have I missed the boat?"
The short answer? No, you haven't missed it: but the boat is definitely preparing to leave the dock. If you are a retiring accountant or just someone looking for a fresh start, 2026 is looking like the most critical "inflection point" we’ve seen in a decade.
Here are the five reasons why I believe accountancy practice valuations in the UK are peaking right now and why your exit strategy needs to be front and center of your mind this year.
1. The 2025 "High Water Mark" and the Shift in GRF Multiples
For years, the industry standard for an accountancy practice valuation was a simple multiple of Gross Recurring Fees (GRF). We all remember the days when 1x or 1.1x was the steady norm. Then came 2024 and 2025. With the influx of consolidators, we saw multiples for high-quality firms: those with clean books and modern systems: climb toward 1.2x, 1.4x, and in some exceptional cases, even higher.
However, the data from the start of this year suggests we’ve hit the ceiling. Market experts are noting that while 2025 was a record year for transactions, the aggressive bidding wars are beginning to cool.
Buyers are becoming more discerning. They aren’t just looking at the top-line recurring fees anymore; they are looking at the "quality of earnings." If your practice hasn't updated its pricing or if your margins are being squeezed by inflation (which has hovered stubbornly around 3.6-3.8%), buyers are adjusting their offers downward. In short: the "easy" peak is behind us. Selling now allows you to capture the tail-end of those premium 2025 valuations before the market corrects further.
A conceptual chart showing the peak of UK accountancy practice valuations in 2025 and the flattening trend in 2026]
2. The MTD "Threshold Squeeze" is Finally Here
We’ve talked about Making Tax Digital (MTD) until we’re blue in the face, but as of April 6, 2026, the £50,000 threshold for Income Tax Self Assessment (ITSA) is a reality.
Why does this affect your practice sale? Because buyers: especially the big accountancy practice buyers and consolidators: are terrified of "legacy" client bases. If a large portion of your fees comes from smaller clients who are currently struggling with the transition to MTD-compliant software, a buyer sees that as a liability, not an asset.
They see a mountain of unbilled support time, potential client churn, and a tech-debt nightmare. By selling in 2026, you are offering a buyer the chance to integrate your clients into their systems while the transition is still fresh. Wait until the thresholds drop further to £30,000 in 2027 and £20,000 in 2028, and you might find that the very clients you’ve nurtured for thirty years are suddenly deemed "unprofitable" by the market.
3. Private Equity Satiation: The "Big Portals" vs. Reality
You’ve likely seen the headlines. Private equity (PE) has moved into the UK accountancy space with a vengeance. Almost half of the top-60 UK firms now have some level of PE involvement.
But here’s the thing about PE: they follow a cycle of "platform" and "bolt-on." For the last two years, they’ve been buying platforms. Now, they are moving into the "optimization" phase. They are getting pickier about accountancy mergers and acquisitions. They want firms that fit a very specific mould.
If you look at the big portals or large accountancy brokers, they’ll tell you there’s a buyer for every firm. But the reality is that the "feeding frenzy" is slowing down. The consolidators have already bought a lot of "fee blocks." They are now focused on integrating what they have rather than paying over the odds for new acquisitions.
At Bains Watts, I work differently. I don't just list your firm on a portal and hope for the best. I find the buyer who actually values your specific legacy. But even for me, it’s clear: the pool of "hungry" buyers is more selective than it was 12 months ago.
4. The Staffing Crisis and Wage Inflation
One of the biggest drivers for a selling accountancy firm right now isn't the owner's age: it's the stress of staffing. It is harder than ever to find and keep qualified seniors and managers.
This impacts your valuation in two ways:
- Direct Profitability: Wage inflation is eating into your EBITDA. Since many modern buyers (especially those PE-backed firms) are moving toward EBITDA-based valuations rather than just GRF multiples, lower margins mean a lower sale price.
- Succession Risk: If you don't have a clear "Number 2" who is staying with the firm, a buyer has to factor in the cost of bringing in a new manager.
By initiating a practice acquisition or sale in 2026, you can exit while your team is still intact and your margins still look healthy on a three-year average. If you wait another two years and lose a key staff member, the value of your practice could plummet by 20% overnight because of the "key person risk."
5. Regulatory Burden: FRS 102 and Beyond
The January 2026 amendments to FRS 102 have added another layer of complexity to financial reporting. For many sole practitioners or small partnerships, the constant treadmill of regulatory changes is becoming exhausting.
Buyers are looking for firms that have already made the jump to modern compliance standards. If you are still operating on "the old way" of doing things, the cost of bringing your practice up to date will be deducted from your final sale price.
Selling in 2026 allows you to hand over the baton to a larger firm with a dedicated compliance department. You get to walk away with your hard-earned capital, and they get to deal with the next round of HMRC changes. It’s a win-win, but only if you move while the market still has the appetite to take on that transition work.
Why the Personal Touch Matters in 2026
When you start looking to sell your practice, you’ll find plenty of options. You might look at competitors like Retiring Accountant or Vivian Sram. They have their way of doing things, often involving large databases and automated matching.
But selling your life’s work isn't an automated process. It shouldn't feel like a call center transaction.
When you work with Bains Watts, you’re working with me, Peter Watson. I’ve seen the trends come and go, and I know that a practice valuation is about more than just a spreadsheet. It’s about the culture you’ve built, the loyalty of your clients, and the specific way you handle your recurring fees.
Whether you are looking for a bookkeeping business for sale to expand your empire or you're a retiring accountant ready to hand over the keys, you need someone who will pick up the phone. No call centers. No "junior associates." Just direct, confidential, and expert advice.
Are You Ready to See What Your Practice is Worth?
The market in 2026 is still strong, but the "peak" is clearly visible in the rearview mirror. Don't be the one who waits for the "perfect" time only to find the market has moved on to the next shiny object.
If you’ve been thinking about a practice merger UK wide or a total exit, let’s have a sensible, confidential chat about your options. We can look at your current accountancy firm GRF multiples and see how you stack up against the current buyer demands.
Don't leave your exit to chance.
Book a confidential 1-to-1 call with Peter Watson today
Next week, we’ll be diving deeper into the technical side of things: The Retiring Accountant’s Guide to MTD: How to Sell Your Practice Before the 2028 Thresholds. See you then!