Business Overview

Established in 2009, this tax and accounting firm is a one-stop-shop for all tax and accounting services. The Practice owes its success to its established name, loyal clients, and collaborative staff amenable to helping the Practice continue to thrive. The Practice’s service by revenue breakdown is 86% Tax Preparation, 26% Bookkeeping, 9% Managerial Accounting, and 5% Other. In 2020, the Practice brought in an impressive $4,679,270 in gross receipts. Of its ~2,500 active clients, ~500 are business client groups and ~2,000 are a mixture of high-net-worth individuals, young professionals, investors, and community leaders. The Practice has incredible workflow efficiency, is entirely paperless, uses cloud-based software, and has an efficient remote working environment. With a great reputation and such a robust client base, this is an excellent opportunity for any buyer. If interested, call us at 253.509.9224 or, send an email to info@privatepracticetransitions.com, with “1155 Profitable King County Tax and Accounting Firm” in the subject line.

Financial

  • Asking Price: $6,300,000
  • Cash Flow: N/A
  • Gross Revenue: $5,181,975
  • EBITDA: $1,407,129
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2009

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,572
  • Lot Size:N/A
  • Total Number of Employees:31
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The Owners are willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period to ensure the new owner’s return on investment is realized.

Additional Info

The business was founded in 2009, making the business 13 years old.

The business has 31 employees and is situated in a building with disclosed square footage of 5,572 sq ft.
The building is leased by the company for $13,707 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. Nonetheless, the true factor vs the one they say to you might be 2 totally different things. For instance, they might state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competition, current reduction in earnings, or a variety of various other factors. This is why it is extremely vital that you not depend absolutely on a vendor's word, yet instead, use the vendor's answer together with your total due diligence. This will repaint an extra sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover items like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that profit margins are too thin. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday revenues. Specific aspects such as new competition sprouting up around the area, roadway building, and also staff turn over can affect repeat customers as well as negatively affect future incomes. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to build a returning customer base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the regional average family income influence future revenue potential?