How to Sell My Accountancy Practice: A Complete Guide

Introduction

Selling an accountancy practice is one of the most important financial decisions you'll ever make. Whether you're preparing for retirement, considering a career change, or responding to industry shifts such as Making Tax Digital (MTD), it's essential to approach the process with clarity and strategy.

This guide explains the key steps to selling your accountancy practice, what to expect at each stage, and how you can maximise the value of your hard work while ensuring a smooth transition for your clients and staff.

1. Preparing Your Practice for Sale

Before marketing your practice, preparation is everything. Buyers want reassurance that the business they're acquiring is well-managed, profitable, and sustainable.

• Organise your financial records – audited accounts, turnover breakdowns, and tax filings.
• Reduce owner dependency – a firm overly reliant on a single partner is less attractive.
• Strengthen client contracts – ensuring agreements are up to date improves retention rates.
• Review compliance and risk – confirm GDPR, AML, and professional body obligations are fully met.

2. Understanding Valuation

Most accountancy practices are valued using a multiple of Gross Recurring Fees (GRF) or EBITDA, adjusted for factors such as:

• Client quality and retention
• Location and regional demand
• Technology adoption (cloud software, MTD readiness)
• Staff structure and profitability

The ICAEW guide The accountant's guide to selling your practice highlights GRF as a central method of valuation, alongside detailed considerations around staff, documentation, and deal structure.

Traditional valuations can take weeks. With FeeBuyer's instant valuation tool, you can see your estimated value in seconds, giving you an informed starting point before speaking with buyers.

3. Finding the Right Buyer

Not all buyers are the same, and the right fit will depend on your priorities.

• Consolidators and larger firms – often seeking regional expansion.
• Independent practices – may want to grow their client base.
• Private equity or investors – generally focused on profitability and systems.

When choosing a buyer, consider:

• Will they look after your clients and staff?
• Do they have the financial stability to complete the purchase?
• Do they share your firm's values and approach?

4. Negotiation and Deal Structure

Once you've found an interested buyer, expect detailed negotiations covering:

• Headline price vs. deferred payments – many deals involve staged payouts.
• Client retention clauses – part of the price may depend on clients staying post-sale.
• Staff contracts and TUPE – employee rights are protected by UK law, meaning contracts must transfer to the buyer. The GOV.UK TUPE guidance provides an overview, while Sprintlaw's TUPE guide explains the process in more practical terms.
• Tax and legal considerations – ensuring the sale is structured efficiently.

The ICAEW helpsheet Buying and selling fees also provides guidance on the ethical and technical aspects of transferring fee blocks or goodwill, including GDPR obligations and client confidentiality.

Engaging with legal and financial advisers at this stage helps safeguard your position.

5. Completion and Transition

The final stage is about ensuring continuity. A successful handover includes:

• Introducing clients to the new owner
• Supporting staff through the change
• Providing knowledge transfer (systems, processes, key contacts)
• Meeting any agreed post-sale obligations

Handled correctly, this stage protects your professional reputation and reassures clients that they remain in safe hands.

Common Mistakes to Avoid

• Overvaluing your practice and deterring serious buyers
• Failing to plan succession early – rushed sales reduce value
• Neglecting client communication – causing unnecessary churn
• Underestimating due diligence – unprepared documents can stall or kill deals

Next Steps

Selling an accountancy practice can feel daunting, but with preparation and the right strategy, you can achieve an excellent outcome.

Start by getting an instant, confidential valuation with FeeBuyer. It gives you a realistic foundation and helps you decide the best timing and approach for your sale.

For further guidance on ethical standards, valuation methods, and legal obligations, see:

• ICAEW – The accountant's guide to selling your practice
• ICAEW – Buying and selling fees helpsheet
• GOV.UK – Business transfers and TUPE
• Sprintlaw – How does TUPE work?

Disclaimer: This article provides general information, not financial or legal advice. Consider professional advice for your specific circumstances.