UK Professional Services M&A: Capital Turns Selective

UK professional services remains one of the more actively consolidated areas of the lower mid-market, although the shape of that activity has changed over the past 12 months.

Accountancy and advisory practices, law firms and specialist consultancies, including testing, inspection and certification businesses, continue to attract strategic acquirers and private equity investors, drawn by recurring fee income, asset-light models and fragmented markets.

This sits against a wider market in which completed UK target transactions fell 19% in 2025, and in which business services was named among the sectors expected to outperform in 2026.

Buyers are still active, but they are choosier about what they back. Buy-and-build remains the dominant model, with a substantial majority of mid-tier accountancy firms having already completed at least one acquisition, yet pricing discipline has returned at the top end: a reported sale of a large accountancy platform was shelved in early 2026 after bids fell short of the seller's expectations, with investors described as more selective on price.

Buyers are also applying an AI screen, with tech-enabled service firms commanding premium multiples while those heavily exposed to automation face a shrinking buyer pool.

Valuation levels for completed deals have sat in the mid to high single-digit EBITDA multiples, with the upper end going to specialist firms and those with recurring, compliance-led fee income.

Firms with contracted revenues, a diversified client base and clear independence from individual partners are attracting competitive tension and a premium, while businesses that rely on a handful of individuals, or whose offering is easily automated, are finding the buyer pool narrower.

Lower borrowing costs have helped buyers fund acquisitions, but they have not removed the focus on earnings quality.



Some deal highlights within the last 12 months:

• Ensors Accountants LLP acquired by Azets Holdings Ltd with a 6.64x EBITDA multiple
• IBB Law LLP acquired by Knights Group Holdings PLC with a 6.38x EBITDA multiple
• Haines Watts Bristol acquired by Gravita Group with a 8.79x EBITDA multiple
• Omnia Projects acquired by Egis Group with a 8.45x EBITDA multiple
• Stiles Harold Williams Partnership LLP acquired by Lambert Smith Hampton Group Limited with a 5.35x EBITDA multiple
• One Advisory Group acquired by FRP Advisory Group PLC with a 7.36x EBITDA multiple

Legal services shows the pattern most clearly. Industry estimates suggest private equity investment in UK law fell from a record £534m in 2024 to around £250m in 2025, yet the number of PE-backed transactions held at 12 in 2025 and reached 15 by early May 2026, including bolt-ons by existing platforms. In other words, more and smaller deals, directed at scalable, specialist and regional firms rather than large corporate practices.

In accountancy, acquisition-led growth is now embedded across the mid-tier, and buyers across the sector are weighing regulatory ownership rules, key-person retention and the recoverability of work in progress and debtors alongside the usual financial diligence.

As we move through 2026, many professional services business owners are reviewing their strategic options.

For those considering a transaction in the next 12 to 24 months, early preparation is critical. This includes demonstrating that client relationships sit with the firm rather than with individual partners, putting retention arrangements in place for the people who drive value, tightening reporting on work in progress, billing and debtor recoverability, taking early advice on structure and tax, and being able to explain credibly how automation and AI affect the service line.

At La Salle Corporate, we are actively engaged with buyers and investors across the UK professional services sector. We support owners in preparing for sale, sharpening the value drivers buyers now scrutinise most closely, and navigating transactions to achieve successful outcomes in the lower mid-market.

If you would like to explore current buyer appetite, valuation benchmarks or preparation for a future transaction, we would be happy to discuss your options with you.

Reach out today to arrange an informal, confidential call.