The UK accountancy sector continues to see sustained merger and acquisition (M&A) activity. For practice principals, understanding valuation drivers, buyer options, and value-enhancement strategies is critical to achieving the best possible outcome.

Most transactions remain based on a multiple of gross recurring fees (GRF) for smaller firms and a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortisation) profits for larger ones. However, buyers look beyond headline multiples when assessing the quality, sustainability, and risk profile of the income being offered.