Increasing the Value of Your Accountancy Practice

Introduction

If you're considering selling your accountancy practice in the next few years, increasing its value beforehand can make a significant difference to the final sale price. Buyers typically pay a premium for well-structured firms with stable, predictable income and modern systems that support future growth.

This guide explains what buyers look for, practical steps you can take to boost value, and how factors such as digital readiness and timing can impact your outcome.

1. What Buyers Look For

When valuing an accountancy practice, buyers focus on several key indicators:

• Recurring revenue – predictable income from ongoing client contracts is far more attractive than ad-hoc project work.
• Stable client base – long-standing relationships, low churn rates, and minimal reliance on a single client increase confidence.
• Profitability – higher margins indicate efficiency and financial stability.
• Digital adoption – practices already using cloud accounting software and integrated workflows are often valued higher.

The ICAEW helpsheet on buying and selling fees confirms that ethical client retention, robust systems, and recurring fee income are critical to achieving strong valuations.

2. Strategies to Boost Value Before Selling

Improving your practice ahead of a sale takes time, but even small changes can increase buyer appetite and valuation multiples. Key strategies include:

• Streamline operations – document workflows, introduce standardised processes, and reduce reliance on manual tasks.
• Reduce dependency on one partner – distribute client relationships across the team, ensuring continuity even if you exit quickly.
• Diversify your client base – avoid over-reliance on a small number of high-value clients; a balanced portfolio reassures buyers.
• Strengthen staff retention – experienced, loyal staff reduce transition risk.
• Maintain up-to-date compliance – demonstrate strong GDPR, AML, and professional standards.

3. Technology & MTD Readiness

Digital adoption is no longer optional. Buyers increasingly prioritise practices that are prepared for regulatory changes such as Making Tax Digital (MTD).

HMRC guidance on Making Tax Digital for Income Tax highlights how firms must use compatible software for record-keeping and reporting. Practices that are already compliant, or ahead of the curve, often command stronger valuations.

Benefits of technology adoption include:

• Reduced admin and error rates
• Scalable operations for growth
• Increased client satisfaction through digital portals and reporting

4. Timing the Market

The timing of your sale can have as much impact on value as the structure of your practice. Factors to consider include:

• Regulatory change – selling before new compliance deadlines (such as full MTD rollout) may reduce buyer concerns.
• Market appetite – valuations fluctuate based on demand from consolidators and regional buyers.
• Personal readiness – rushing into a sale without preparation can reduce value; planning two to three years ahead is ideal.

The ICAEW guide The accountant's guide to selling your practice advises that sellers who anticipate market and regulatory cycles are more likely to secure maximum value.

Common Mistakes to Avoid

• Leaving preparation too late – small improvements take time to show measurable results.
• Over-promising digital adoption – buyers will test your systems during due diligence.
• Ignoring staff impact – undervaluing the role of staff in continuity can deter buyers.
• Failing to diversify – over-reliance on a handful of clients increases perceived risk.

Next Steps

By improving systems, strengthening compliance, and preparing for regulatory change, you can significantly increase the attractiveness and value of your accountancy practice.

Check how small changes can affect your valuation instantly with FeeBuyer's confidential valuation tool.

For deeper guidance, see:

• ICAEW – The accountant's guide to selling your practice
• ICAEW – Buying and selling fees helpsheet
• HMRC – Making Tax Digital

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