Well-Established Midlands Accountancy Practice – £900k Fees – Strong Recurring Income

Location: Worcestershire (Midlands)

Years Established: c 9 years

Year End: 30 June

VAT Registered: Yes

Software: IRIS (accounts & tax), Xero, FreeAgent, Sage, KashFlow, QuickBooks

Sale Type: Full sale or partial acquisition considered

Overview

A great opportunity to acquire a well-established and highly regarded general practice serving a predominantly Midlands-based client portfolio. The practice has grown organically to generate circa £900,000 in annual fee income, with a strong recurring revenue profile of approximately 95%.

This opportunity will appeal to acquisitive firms seeking scale in the Midlands, as well as ambitious individuals or firms looking for a part-purchase / buy-in opportunity with long-term growth potential.

Financial Highlights

  • Total Practice Income: c. £900,000
  •  Recurring Fees: c. £855,000 (95%)
  • Non-Recurring Fees: c. £45,000 (5%)
  • Estimated Profit: c. £200,000
  • WIP: c. £240,000
  • Debtors: c. £160,000

Non-recurring work is typically replaced year-on-year with alternative advisory or subcontract assignments, providing consistency of income.

Client Profile

The practice operates as a general practice with a broad and well-balanced client base:

  • Limited Companies / CICs: c 255 (excluding dormant companies)
  • Partnerships / LLPs: 20
  • Sole Traders: 183
  • Personal Tax Only Clients: 110

Geographical split:

  • 85% Worcestershire and the wider Midlands
  • 15% further afield, including Ludlow, Brighton, Bristol, London, and Wolverhampton

Average Fees:

  • Smallest: £180 (Self-Assessment only)
  • Largest: £18,000 (Payroll & P11Ds only client)

Operations & Systems

  • Core accounts and tax: IRIS
  • Bookkeeping & management accounts: Xero, FreeAgent, Sage, KashFlow, QuickBooks
  • Audit work: None
  • Professional Indemnity Insurance: In place
  • PI Claims: None

The practice also collaborates with other firms on advisory and subcontract work, which is reflected in non-recurring fee income.

Premises

The practice operates from offices owned by the principal’s pension fund. A key stipulation of any transaction is that the practice continues to operate from the current premises in the medium to long term, providing stability for clients and staff.

Sale Rationale & Buyer Options

The owner is open to two potential routes:

1. Full Acquisition

o The owner would be happy to remain onboard long-term post-sale if required, ensuring continuity and smooth client transition.

2. Partial Purchase / Buy-In

o An ideal opportunity for an ambitious accountant looking to buy into an established practice and work alongside the owner to drive further growth.

o There is a reluctance to take in new clients due to the restrictions on the owner’s time, and they currently turn new opportunities down. A buyer with strong client-facing capability can unlock immediate and significant growth.

Summary

This is a rare opportunity to acquire or invest in a high-quality, profitable Midlands practice with strong recurring income, a loyal client base and clear growth potential. Suitable for regional firms seeking expansion or individuals looking for a strategic buy-in with long-term prospects.

For further information or to register interest, please contact Accountants For Sale.

For more information, please call 0203 811 8543, quoting reference 240019