Listing ID: 80746

Business Overview

Long established firm with monthly recurring revenue, not solely dependent upon tax season revenues. Stable and predictable historical revenues. Growth opportunities abound with an energetic acquirer. 45 days of transition time included in purchase price. Owner willing to provide additional support to ensure the highest level of success.

Financial

  • Asking Price: $499,000
  • Cash Flow: $351,264
  • Gross Revenue: $607,445
  • EBITDA: N/A
  • FF&E: $5,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1948

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in the same recognizable office building for many years with adequate parking and room to expand. Relocation opportunities are available if desired.

Is Support & Training Included:

Will train for 6 weeks @ $0 cost. Accounting services, income tax preparation, bookkeeping, financial statement compilations and payroll services.

Purpose For Selling:

Retirement.

Pros and Cons:

Industry is forecasted for continued expansion. IBISWorld Reports: "The Accounting Services industry is expected to continue to experience strong demand over the five years to 2026 as overall business activity improves following the COVID-19 (coronavirus) pandemic and subsequent recession".

Opportunities and Growth:

Current work loads have been comfortable, therefore the firm hasn't been aggressive in growth. Advertising would bring in more clientele. Adjustment to fee structure. Summer workload could increase easily with adding additional monthly clients, expand payroll services and local audits.

Additional Info

The venture was established in 1948, making the business 74 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell companies. Nevertheless, the true reason vs the one they say to you might be 2 entirely different things. For instance, they may claim "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of other reasons. This is why it is extremely vital that you not count totally on a seller's word, yet instead, utilize the seller's answer along with your total due diligence. This will repaint an extra realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in new clients? Many times, operating businesses have repeat consumers, which form the core of their daily earnings. Particular factors such as new competition growing up around the area, road building and construction, as well as employee turnover can impact repeat consumers and adversely influence future revenues. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to build a returning client base. A final thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the neighborhood average household earnings effect future income potential?