A market-informed view
How much is an accountancy practice worth?
The honest answer is: it depends on the practice and the deal. Two firms with the same gross recurring fees can command different offers because their profits, client risks, teams, systems and transition needs are different.
For smaller practices and blocks of fees, the market often discusses value as a multiple of sustainable gross recurring fees. For larger or more complex firms, maintainable profit and strategic fit tend to carry more weight. The payment structure matters too: a high headline price is less attractive if too much is uncertain, deferred or exposed to avoidable clawback.
What a useful valuation should do
- explain the assumptions behind the range;
- distinguish recurring and one-off income;
- consider maintainable earnings and buyer costs;
- identify strengths that can be evidenced;
- highlight risks a buyer is likely to price in;
- help you decide whether to sell now or prepare further.
A valuation is most useful when it informs action—not when it simply supplies the most flattering number.