How are Accountancy firms valued?
The general norm is to base the valuation of an accountancy firm on a multiple of its GRF (Gross recurring fees). One off work, say consultancy, will not count towards GRF unless it can be evidenced that there is a strong chance of repeat business. Typically, as the value of an accountancy firm revolves around expected future fee income it is the multiple of sustainable GRF that forms the central focus for negotiation.
