If you’ve been keeping one eye on the market while the other is buried in tax returns, you’ve likely noticed a bit of a "gold rush" feeling over the last couple of years. Since 2024, the UK accountancy sector has seen some eye-watering multiples. But as we sit here in July 2026, the question I’m hearing most often from retiring accountants is: "Have I missed the boat?"
The short answer? No. But the tide is definitely changing.
I’m Peter Watson, and through Bains Watts Ltd, I spend my days talking to practice owners across the UK, sole practitioners, partners, and firms, who are trying to navigate the complex world of accountancy practice valuations UK. Unlike the big corporate brokerages, I don’t use call centres or hand you off to a junior account manager. When you want to talk about selling your practice, you talk to me.
Today, I want to share why 2026 is proving to be a watershed year for anyone considering a practice sale or accountancy practice merger.
1. The GRF Multiple "Ceiling" has Been Reached
For decades, the industry benchmark was a fairly steady 1.0x to 1.1x Recurring fees. Then, around 2024, we saw a surge. Private equity money flooded the market, and consolidators were tripping over themselves to pay 1.4x or even 1.5x GRF for the right firms.
In 2026, we’ve seen those accounting firm GRF multiples level off. The "cheap money" era of low interest rates is firmly behind us, and buyers have become significantly more disciplined. While a high-quality, tech-enabled firm can still command a premium, the days of getting 1.5x for a traditional, paper-heavy compliance practice are largely gone. If you are looking for an accountancy practice valuation, anchoring your expectations to the peak of 2025 might be a mistake. We are currently seeing a "flight to quality", where the average is returning to 0.9x – 1.2x GRF.
2. The MTD "Clock" is Ticking Louder Than Ever
Remember when Making Tax Digital (MTD) felt like a distant problem? Well, with the 2028 thresholds for ITSA (£20k+) looming, the accountancy practice buyers of today are looking at your client list with a very critical eye.
Buyers in 2026 are terrified of "remedial work." If your bookkeeping business for sale or your small practice is still largely manual or your clients aren't already on cloud-based systems, a buyer is going to factor in the cost of that transition. They aren't just buying your fees; they are buying a project.
If you’re a retiring accountant planning to exit in the next two years, 2026 is your last real window to present a practice that is "future-proofed" before the 2028 deadline becomes a valuation-killer. You can check the latest MTD updates on the ICAEW or ACCA websites to see just how much the pressure is mounting.
3. The Talent Shortage is Squeezing Profit Margins
It’s no secret that finding good staff in the UK accountancy sector is like finding a needle in a haystack. In 2026, wage inflation has hit hard. This is critical because while we often talk about recurring fees, savvy buyers are actually looking at your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
If your staff costs have spiralled while your fees have stayed stagnant, your "multiple" might stay the same on paper, but your actual take-home price will drop. I often advise my clients at Bains Watts that 2026 is the year to review your pricing. If you haven't raised your fees to match the "talent tax," you're effectively devaluing your firm's practice valuation.
4. The "Baby Boomer" Supply Wave
We are currently seeing a record number of accountancy practices for sale. Why? Because the post-war generation of practice owners is reaching retirement age all at once. Basic economics tells us that when supply increases, prices can soften.
Right now, there is still plenty of demand from accountancy practice buyers, but they have more choice than they did five years ago. This is where your choice of accountancy brokers becomes vital. You aren't just looking for someone to list your business on a portal; you need someone who can highlight the unique value of your firm and find the right fit: not just the first one who makes an offer.
5. Private Equity is Getting Pickier
The "big aggregators" that dominated the headlines in 2024 and 2025 are still active, but they’ve changed their strategy. They are no longer buying everything in sight. In 2026, they are looking for practice acquisitions that offer clear "synergies": which usually means they want your team and your tech, not just your tax returns.
If you are a sole practitioner looking to sell your practice, the consolidators might not be your best bet anymore. The "peer-to-peer" market: where one ambitious local firm buys another: is becoming the most reliable way to achieve a fair practice sale UK. This is where the personal touch comes in. I pride myself on knowing the buyers personally, ensuring that your legacy is in safe hands.
Why Peter Watson and Bains Watts?
Selling your life’s work shouldn't feel like a transaction in a call centre. You’ve spent years building relationships with your clients, and you deserve a brokerage service that respects that. Whether you are looking to buy a practice to grow or you're a retiring accountant ready for the next chapter, I provide a confidential, one-to-one service.
There’s no pressure, no account managers, and no generic advice. Just an honest, market-based Accountancy Practice Valuation and a commitment to getting you across the finish line.
Don't Wait for the 2028 Rush
If you’re wondering what your firm is worth in today’s market, let’s have a quiet, confidential chat. 2026 is a critical year: don't let it pass you by while you're waiting for the "perfect" moment that might have already peaked.
Ready to discuss your exit strategy?
Book a confidential discovery call with me here.
You can also explore more about my services at www.bainswatts.co.uk.
For more industry insights, I highly recommend keeping an eye on AccountingWEB for general UK profession news, or checking out the latest merger trends via the specialist teams at Vivian Sram or Retiring Accountant, who also specialise in this niche space.