Will I have to stay on after the sale?

Usually for a handover period, and often tied to an earn-out. The length depends on how transferable the client relationships are, which is something you can influence before going to market.

How are recurring fees valued?

Commonly on a multiple of adjusted profit, with recurring income supporting the top end of the range. In some sub-sectors buyers also reference a multiple of recurring fees directly.

Sell a Professional Services Firm | UK M&A

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Overview

What buyers look for in professional services.

In professional services the asset walks out of the door at five o'clock. Buyers know that, so they price for client stickiness, fee recurrence and how well the firm runs without its founder.

We help owners evidence all three, then approach buyers who are used to earn-out structures and can retain both clients and staff through a transition.

Value drivers

Where the value actually sits.

Recurring fee income

Retained and annually recurring fees attract materially higher multiples than project work.

Client concentration and tenure

A broad base of long-tenured clients is the single strongest signal of transferable value.

Second-tier leadership

Where senior staff hold the relationships alongside you, buyers worry less about attrition after completion.

Utilisation and pricing

Clear chargeable rates, utilisation and realisation data show the firm is managed, not just busy.

Who buys

Buyer appetite today.

Consolidation is strong across accountancy, insurance broking and consulting. Buyers are typically larger practices or private equity backed platforms buying recurring fee income.

✓Larger practices acquiring fee income and specialism
✓Private equity backed professional services platforms
✓Management buy-out teams already inside the firm
✓Complementary advisers cross-selling into your client base

Before you go to market

Preparation that pays.

01
Split fee income into recurring, repeating and one-off.
02
Review engagement letters and any assignment restrictions.
03
Identify which relationships depend on you and start widening them.
04
Be prepared for an earn-out. Most deals in this sector include one.

Related deals

Businesses we have sold.

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