If you’ve been in the profession for more than a decade, you’ve probably heard the old "rule of thumb" more times than you can count: your practice is worth 1.2x your Gross Recurring Fees (GRF). For years, this was the gold standard for any retiring accountant looking to exit the stage. But as we sit here in June 2026, the landscape has shifted.
The question I get asked most frequently by owners looking to sell an accountancy practice is: "Peter, is 1.2x still the number?"
The short answer? It’s a starting point, but it’s no longer the finish line. In today’s market, a 1.2x multiple can be either a massive undervaluation of a high-performing firm or a pipe dream for a practice that hasn't kept up with the times.
I’m Peter Watson, and I spend my days navigating the complexities of accountancy practice valuations in the UK. My goal is to move past the generic "call centre" approach and give you the honest, experienced advice you need to ensure your practice sale reflects the true value of what you’ve built.
Why the "Multiple" is Evolving
Historically, accountancy brokers and buyers focused almost exclusively on recurring fees. It made sense; accounting was seen as a safe, annuity-style business. However, the 2026 market is different. We are now dealing with the full rollout of MTD ITSA, a heightened focus on advisory services, and a massive shift in how accountancy practice buyers assess risk.
When a buyer looks at accountancy practices for sale today, they aren't just buying a list of names. They are buying your systems, your staff, and your future profitability. This is why Accountancy Practice Valuation has moved from a simple top-line calculation to a more nuanced look at EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or SDE (Seller’s Discretionary Earnings).
The Drivers of Value in 2026
If you want to sell your practice for a premium: potentially exceeding that 1.2x mark: you need to understand what is driving value in the current UK market.
1. The Quality of Recurring Fees
Not all fees are created equal. A block of fees consisting of high-margin, tech-savvy clients who are already transitioned to digital records is worth significantly more than a bookkeeping business for sale that still relies on "shoebox" clients. Buyers are looking for predictability and low friction.
2. Profitability (The EBITDA Shift)
Larger firms and private equity consolidators are increasingly ignoring the GRF multiple entirely in favour of EBITDA multiples. If your practice has a 40% margin, it is inherently more valuable than a peer with a 15% margin, even if the GRF is identical. Improving your internal efficiency before an acquisition can add six figures to your final cheque.
3. Technology and MTD Readiness
With HMRC’s requirements more stringent than ever, a practice that is "future-proof" commands a higher price. If a buyer has to spend the first 12 months of a practice acquisition dragging your clients onto cloud software, they will bake that cost into their offer.
4. Owner Dependency
One of the biggest hurdles I see when helping a retiring accountant is "key person risk." If the clients only stay because of you, the value of the practice drops the moment you mention a step-back strategy. A practice that runs smoothly without the principal is the one that sparks a bidding war among accountancy practice buyers.
What the Competition Says (And What They Miss)
You might see platforms like Retiring Accountant or brokers like Vivian Sram talking about "lucrative new opportunities" and "market-leading specialists." While they certainly provide a high volume of listings, what I offer is a direct, one-to-one partnership.
There are no account managers here. When you want to discuss accountancy mergers or a practice valuation, you speak to me. We look at the "goodwill valuation" with a practical, market-based lens: not just a spreadsheet formula.
The "1.2x" Reality Check
So, does 1.2x still exist? Yes. In fact, for a solid, well-run regional practice with good staff and a healthy mix of compliance and advisory work, 1.2x is often the "fair" anchor point.
However, we are seeing deals for highly automated, niche practices go for 1.4x or even 1.5x GRF. Conversely, practices with high client churn or outdated fee structures might struggle to hit 0.8x.
The market for accountancy practices for sale in the UK remains robust because accounting is a resilient profession. Even with economic fluctuations, businesses need accountants. But as we move further into 2026, the gap between "standard" and "premium" practices is widening.
Preparing for Your Practice Sale
Whether you are looking to buy an accounting practice to grow your footprint or you are a retiring accountant ready to hang up the calculator, preparation is everything.
- Audit your fees: Are they truly recurring? Are they profitable?
- Review your staff: Do you have a "number two" who can lead the transition?
- Check your tech: Is your stack modern and scalable?
If you are considering a practice merger UK wide or just want to know where your firm stands, don't rely on a "rule of thumb" from 1995. You need a valuation that reflects the reality of the 2026 UK accountancy market.
Let's Talk Strategy
Navigating a selling accountancy firm journey is personal. It’s not just a transaction; it’s the culmination of your life’s work. I provide a confidential, no-pressure environment where we can discuss your goals: whether that’s an outright sale, a phased practice merger, or an acquisition to bolster your current fees.
I’ve helped countless professionals move from "thinking about it" to "deal completed." My approach is focused on finding the right buyer: someone who will look after your clients and your legacy.
If you’re ready to find out what your practice is really worth in today’s market, let’s have a chat. No call centres, no fluff: just experienced advice from someone who knows the UK accountancy brokerage world inside out.
Book a confidential valuation or strategy call with Peter Watson here
Key Takeaways for 2026 Valuations:
- GRF is a guide, not the rule: EBITDA and SDE are becoming the primary metrics for savvy buyers.
- Technology is a value-add: MTD readiness significantly reduces buyer risk.
- Confidentiality is king: Ensure your accountancy brokers respect the sensitivity of your data and client relationships.
- Personal touch matters: Deal with a specialist who understands the UK landscape, from the ICAEW standards to local market nuances.