Listing ID: 80928
Long established CPA practice available in rapidly growing Northern Nevada. Current ownership established in 2015, but the firm was founded in the Carter years.
The practice does just under 700 personal and corporate tax returns a year and offers payroll and bookkeeping services as well. Software packages include ProSystem fx®, ProSystem fx Engagement® and QuickBooks®.
From a Business perspective, Northern Nevada is highly regarded as a pro-business, low-tax environment that appeals to a wide range of business and industry. With no personal, corporate, franchise, estate, inheritance, or inventory tax, it’s no wonder that Nevada ranks #7 Most Business-Friendly Tax Climate.
- Asking Price: $290,000
- Cash Flow: $142,318
- Gross Revenue: $421,139
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1979
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,100
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
4,100 sf Leased @ $1,500/Month
Time negotiable; Owner is willing to answer questions over phone or email (will not be a physical presence).
CPA services are in very high demand in this growing community and a significant number of local competitors, like the seller, are at or near retirement age.
Buyer could simply start accepting new clients, (seller hasn’t accepted new clients in the last year). Seller currently has no Internet or Social Media presence. The community, (like all Northern Nevada) is growing rapidly, but accounting resources are shrinking. New owners could start marketing Payroll and Bookkeeping services again as Seller de-emphasized that aspect of the practice as they were considering an exit.
The company was started in 1979, making the business 43 years old.
The building is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell companies. Nonetheless, the genuine reason and the one they tell 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 factors are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is extremely vital that you not count entirely on a vendor's word, but instead, utilize the seller's response in conjunction with your total due diligence. This will repaint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that revenue margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new customers? Most times, companies have repeat customers, which form the core of their everyday revenues. Certain elements such as brand-new competition growing up around the location, road construction, and personnel turnover can affect repeat customers and adversely impact future earnings. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local mean house earnings impact future revenue potential?