If you’ve been keeping an eye on the market, you’ve probably heard the whispers. "1.2x is the new 1x," or "Private equity is driving everything to 2.0x." But as we move through 2026, the reality on the ground for the average retiring accountant in the UK is a bit more nuanced.
I’m Peter Watson, and I’ve spent years helping practice owners navigate the often-murky waters of accountancy mergers & acquisitions. I’ve seen the deals that make headlines and the ones that happen quietly behind closed doors. Today, I want to pull back the curtain on what is actually being paid for accountancy practices for sale right now.
The State of the Market in 2026
The landscape for a practice sale has shifted. While the Financial Reporting Council (FRC) continues to report on the consolidation of the industry, the "boots on the ground" truth is that the gap between a "standard" practice and a "premium" one has never been wider.
In 2026, we aren't just looking at a single number. We are looking at a spectrum. Whether you want to sell your practice or you are looking to buy a practice, understanding the GRF (Gross Recurring Fee) multiple is the first step in ensuring a fair deal.
What is a GRF Multiple, Really?
For the uninitiated, the GRF multiple is the standard shorthand for valuing an accounting firm. If your practice generates £500,000 in recurring fees and the multiple is 1.1x, the goodwill value is £550,000.
However, in 2026, smart accountancy practice buyers are looking deeper. They aren't just buying fees; they are buying systems, client loyalty, and, most importantly, compliance with the latest Making Tax Digital (MTD) requirements.
The "Secrets" of the 2026 Multiples
So, what are the numbers? Based on the deals I’ve brokered recently at Bains Watts, here is the breakdown of what is actually happening in the UK market:
1. The "Safety" Zone: 0.8x to 1.1x
This is where the majority of practice mergers UK still sit. If you are a sole practitioner with a loyal but perhaps "traditional" client base, you can expect a multiple in this range.
- Why the discount? Often, these practices are heavily owner-dependent. If the clients only want to talk to you, the risk for the buyer is higher.
- The Buyer: Usually another local firm looking for a "bolt-on" acquisition to increase their local footprint.
2. The "Sweet Spot": 1.1x to 1.3x
This is the target for most well-run firms. To hit these numbers in 2026, you need more than just a list of clients. You need a bookkeeping business for sale that is integrated into your main practice, high automation, and a clean staff structure.
- Why the premium? Buyers love "turnkey" operations. If they can plug your practice into their existing systems without a hitch, they will pay for that lack of friction.
- The Buyer: Mid-tier firms or regional consolidators similar to those found on sites like Retiring Accountant.
3. The "Unicorn" Multiples: 1.4x+
Yes, 1.5x and even 1.7x GRF deals are happening, but they are specific. These are usually firms with over £1m in GRF, a full management team (so the owner is redundant), and a niche focus (like R&D tax, tech startups, or crypto).
- The Buyer: Private Equity-backed consolidators or large national firms looking for a strategic accountancy practice merger.
Why One-Size-Fits-All Valuations are Dangerous
I often see practitioners look at competitors like Vivian Sram or generic business brokers and think they can just apply a blanket multiple to their firm.
But a practice valuation isn't just about the top line. As an accountancy practice broker UK specialist, I look at the "quality of earnings."
- Are your fees truly recurring?
- What is your "average fee per client"?
- Is your tech stack a mess? (We’ll dive deeper into that in next week's post).
The Peter Watson Difference: No Call Centers, Just Expertise
When you’re thinking about a selling accountancy firm move, the last thing you want is to be passed around a corporate office like a file number.
My USP is simple: you deal with me. Directly.
I don't use call centers. I don't have "account managers" who have never seen a balance sheet. When we discuss your accountancy practice valuation uk, we are having a confidential, expert conversation based on decades of experience in the UK market.
I understand the stress of being a retiring accountant. You’ve spent 30 years building this. It’s not just a "block of fees": it’s your legacy. My goal is to find the right accountancy practice buyers who will respect that legacy while paying you what you’re worth.
How to Increase Your Multiple Before You Sell
If you aren't quite ready for a practice sale today but are planning for 2027 or 2028, there are three things you should do right now to move from a 1.0x to a 1.2x multiple:
- Clean up your Recurring Fees: Move as many clients as possible to monthly direct debits. Buyers hate chasing "work in progress" (WIP) that isn't guaranteed.
- Document your Processes: If your "system" is inside your head, your practice is worth less. Write it down.
- Audit your Client List: A few "pain in the neck" clients with low fees can actually drag down your valuation. It might be time to let them go.
Closing the Deal: It's Not Just About the Headline Figure
One "secret" I always tell my clients is that the multiple is only half the story. The deal structure is just as important.
- Is it an outright sale?
- Is it a deferred sale with a 2-year earn-out?
- What are the clawback provisions?
I’ve seen 1.4x deals that were actually worse for the seller than 1.1x deals because of the "fine print" on client retention. This is where having a dedicated accountancy broker like myself makes the difference. I'm here to guide you through the completion, ensuring you don't just get a high "headline" price, but a high "take-home" price.
Ready for a Real Valuation?
Don't rely on guesswork or generic online calculators. If you want to know what your practice is truly worth in the 2026 market, let's have a quiet, confidential chat.
Whether you are looking for accountancy practices for sale to grow your empire or you are ready to hang up the calculator, I can help.
Book a Confidential 1-to-1 with Peter Watson
Peter Watson is the Director of Bains Watts Ltd and a specialist in the sale, purchase, and valuation of accountancy practices across the UK.