How UK Accountancy Practices Are Valued: GRF Multiples Explained

If you've ever asked a broker what your practice is worth, you'll have heard the phrase "GRF multiple". It's the shorthand the whole market runs on — and it's worth understanding properly before you talk to any buyer, including us.

What is GRF?

GRF is gross recurring fees: the annual fee income that repeats without being re-won each year. Compliance work — accounts, tax returns, payroll, bookkeeping, audit — is recurring. One-off project work, advisory sprints, and referral commissions generally aren't counted, or are counted at a discount.

Buyers price practices as a multiple of GRF because recurring fees are what they're really buying: a client base that pays again next year.

The range — and where firms actually land

UK general practices have historically changed hands anywhere from around 0.8x to 1.6x GRF. The wide range isn't noise. It reflects real differences:

• Client quality and spread. A firm where no client is more than 3% of fees is worth more than one where a single client is 20%.
• Fee levels. Under-priced work drags the multiple down — the buyer inherits the awkward repricing conversation.
• Technology. Cloud-native firms (Xero, digital workflows) transfer cleanly. Desktop-and-paper firms cost the buyer real money to migrate.
• Team. A capable second tier that stays post-sale supports the top of the range. A firm that is entirely the founder does not.
• The founder's exit speed. A gradual handover protects client relationships — and the price reflects that protection.

Why deal structure matters as much as the headline

Two offers at "1.5x" can be completely different deals. What matters is how the consideration is structured: how much on day one, how much deferred, and what the deferred element depends on. Most practice deals include an earn-out tied to client retention over one to three years — which is reasonable, provided the mechanics are fair and clearly defined. (We've written a plain-English guide to earn-outs.)

Where we sit

Through the Practice Group platform, we typically value firms at 1.3–1.6x GRF — the upper part of the market range — because we're building a long-term platform, not flipping. We publish that number deliberately. Most buyers won't tell you their range until you're deep in the process; we'd rather you knew where you stand before the first call.

The honest caveat: not every firm gets the top of any buyer's range. The factors above move the number, in both directions. But you should never find out what a buyer thinks your life's work is worth three months into a process.