Listing ID: 77357
50+ new clients so far in 2021 and there are currently no outbound sales and marketing campaigns other than satisfied clients that refer business to the firm. Most of the revenue from these new clients will not be realized until tax season 2022.
This is a very well regarded firm with a strong reputation for quality work that handles a variety of work throughout the country as well as in San Diego County. The core of work is in San Diego County, however there are some individuals and businesses outside of San Diego County and even the state of California that rely on the firm for the tax and accounting needs. The personal touch provided by a firm of this size is a major reason why someone from outside the state with a complicated tax return prefers to work with this firm rather than a larger tax or accounting firm. There are relationships in place that funnel new clients to the firm from outside of the state through word of mouth referrals.
This is a chance to own your own accounting firm that has a diversified base of clients, extremely well trained employees, and the ability to continue to grow within the current accounts to achieve higher revenue levels.
- Asking Price: $900,000
- Cash Flow: $375,000
- Gross Revenue: $800,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Very attractive office in a convenient San Diego location. Close to freeways for an easy commute for employees and the occasional client meeting. Access to additional space within the building if needed and space for all employees.
Current owner is willing to train and transition relationships to new owner through introductions prior to tax season as well as assist in preparation of returns during tax time. On a longer term basis the current owner can assist on larger projects or work with clients or potential clients on a limited basis for a fee.
Almost unlimited room for expansion, however the ability of a client to speak to the owner is something that should not be lost. The new owner will need to decide when to raise prices so the firm does not become overloaded with work or if they would like to take on more clients and grow the firm. One employee that is currently an EA is in the process of taking the CPA exam, so the business will have 2 full time CPAs staying with the business as employees.
The business was established in 2008, making the business 14 years old.
The company has 4 employees and resides in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the genuine factor and the one they tell you may be 2 totally different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a range of other reasons. This is why it is really crucial that you not count totally on a seller's word, yet rather, make use of the vendor's answer together with your general due diligence. This will paint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that earnings margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new consumers? Most times, companies have repeat consumers, which form the core of their everyday earnings. Certain elements such as brand-new competition sprouting up around the location, road building and construction, and also personnel turnover can affect repeat customers and also negatively influence future incomes. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional mean home income effect future earnings prospects?