Buying an accountancy practice: what to look for
For founder-led accountancy practices buying other firms: the UK market, how to assess fee bank and client retention, and how to reach partners open to a sale.
This page is for owners and managing partners of established accountancy practices, usually with £5m to £100m of fees, who want to grow by buying other firms. You might want a new town or region, more clients for a strong compliance team, or a specialist service such as tax advisory or audit that you would rather buy than build.
We help you find the right practices to buy, including ones not for sale, approach their partners in confidence and keep the deal moving. Professional and regulatory review sits with your accountants and lawyers.
What is happening in UK accountancy M&A?
Private equity has changed the market quickly. In ICAEW's 2026 survey of mid-tier firms, 46% had secured private equity investment, up from 25% in 2025 and 12% in 2024. Of those backed firms, 94% planned to make acquisitions, against 58% of independent firms (ICAEW, 2026). The sample is small: 35 firms responded out of 110 surveyed, so treat it as a strong signal rather than a precise measure.
Across professional services as a whole, Grant Thornton counted 310 UK deals completed in 2025, up from 292 in 2024 (Grant Thornton UK, June 2026).
For an independent buyer, this means more competition for good practices and more partners being approached. It also means some partners who want an alternative to a private equity-backed buyer. Interestingly, the ICAEW survey found fewer firms citing succession as a reason for M&A: 38%, down from 68% the year before. Don't assume every owner wants to retire. Ask what they want.
Why do practices buy other practices?
- Client base and fees. Buying a fee bank (the recurring fees a practice earns from its clients each year) is often faster than winning the same clients one at a time.
- People. Qualified staff are hard to hire. A practice brings a team that already knows the clients.
- Geography. A local firm with a reputation can be a better way into a new area than opening an office.
- Services. Buying a firm with specialist skills, such as tax, payroll or advisory, broadens what you can offer existing clients.
- Scale. A larger firm can spread the cost of software, compliance and training over more fees.
What makes a practice different to assess?
A general due diligence checklist covers the basics. These points matter most for a practice. We don't publish typical retention rates or valuation formulas, because they vary too much to be useful and should be tested deal by deal.
| Area | What to check |
|---|---|
| Fee bank quality | Split of fees between recurring compliance work (accounts, tax returns, payroll, bookkeeping) and one-off advisory or project work. Fee history by client over several years, lost clients and why. |
| Client retention | How many clients deal only with the selling partner. Whether engagement letters exist, are current and can move to you. How clients will be told and by whom. |
| Partner dependence | How much of the work and the relationships sit with one or two people, and what they will do after completion. Restrictive covenants and a handover period. |
| Professional requirements | Regulatory and professional body record, monitoring visits, complaints, professional indemnity claims and run-off cover. Any audit registration and whether it can continue. |
| Lock-up and working capital | Unbilled work and unpaid fees, and how they will be treated in the price. |
| Systems and workflow | Practice management, tax and accounts software. Moving clients onto your systems is often the biggest piece of integration work. |
| People and culture | Staff contracts, pay, workload and how the team works. Different ways of working can cause people to leave. |
The fee bank and the selling partner's relationships are where buyers most often get caught out. A practice whose clients are loyal to one person is worth less to you than its fees suggest, unless the deal is structured to protect you and the handover is planned. Many practice deals pay part of the price later, depending on how many clients stay. Your advisers should set those terms.
How does finding practices to buy work?
Partners in good practices are approached often, so a generic letter rarely gets a reply. What works better:
- Define what you want and why. Region, fee size, service mix, client type and how you will integrate. This is your acquisition thesis.
- Research properly. Filings, websites, professional body registers, staff numbers and services offered show what a practice really does.
- Approach in confidence, buyer to partner. Explain why their practice fits yours and what would happen to their clients and team. Partners care about this as much as price.
- Qualify before you meet. Confirm interest, rough fit and any obvious problems before senior time is spent.
There is more in how to approach a business owner.
Who does what on a practice acquisition?
We have not completed an accountancy practice acquisition for a client, so we won't claim one. Michael Ferguson is ACCA qualified and trained at a leading accountancy firm, so he knows how practices work from the inside, and he has led buy-side work across several sectors. Our role is the method: research, confidential approaches and keeping the deal on track.
- You: the decision, the partner relationship and the integration plan.
- Acquisitiv: the search, partner approaches, qualification and deal management.
- Your accountants: fee bank analysis, real profit and lock-up.
- Your lawyers: engagement letters, client transfer, covenants, professional indemnity and the sale agreement.
How can Acquisitiv help?
Acquisitiv Target 45 researches 100 practices that fit your criteria, agrees the list with you, approaches the partners in confidence and makes 5 introductions to owners open to a confidential conversation about a sale. If we are short at day 45, we keep going at no extra fee. It does not promise a completed deal.
If you plan to buy several practices, the Acquisitiv Expansion Partnership runs your search, pipeline and live deals month after month, coordinating your lawyers and accountants.
Where to start
If you are thinking about buying a practice and want a straight view on whether now is right, book an Expansion Briefing: a 30-minute call with us, followed by a short written summary and a recommended next step.
Questions buyers ask
How is an accountancy practice valued?
There is no single formula, and we don't think any rule of thumb should be relied on. Price depends on real profit, the mix and reliability of recurring fees, how dependent clients are on the selling partner, and how the deal is structured, including how much is paid later and linked to client retention. Your accountants should test the numbers before you agree a price.
Should part of the price depend on client retention?
It is common in practice deals to pay part of the price later, linked to how many clients or fees stay after completion. That protects you if clients leave with the seller. The terms need care, because the seller will want a fair chance of earning it. Your lawyers and accountants should set the mechanics.
Can an independent practice compete with private equity-backed buyers?
Often, yes. Some partners want their firm and team to go to a practice that works the way they do, and they prefer an independent buyer. Reaching them early, in confidence, is what makes the difference.
What specialist checks does a practice acquisition need?
Your accountants and lawyers will review the financials, engagement letters, professional indemnity history and regulatory record. You should also check how the target's software and workflows will move onto yours, as this often drives the integration workload.
Last reviewed 16 October 2026 by Michael Ferguson.
Want owners at your table in 45 days?
Start with a free Expansion Briefing. If Target 45 is right for you, we'll plan it together on the call.