Listing ID: 80947
An established CPA in a desirable Northern Nevada community wants to exit the tax and bookkeeping portions of a practice that was built over 50 years ago in the region, (current owner took over in 1999). Seller is open to staying with the practice at 40-60% time for 2-5 years to ensure minimal attrition and a smooth transition to the new owner.
Locally, the Reno, Sparks, and Carson City area has a small town feel with a big city attitude. The city offers excellent shopping and dining options, robust nightlife offerings, high-performance schools, including a Tier 1 University with over 25,000 students—and is just a half hour from beautiful Lake Tahoe.
From a Business perspective, 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: $517,000
- Cash Flow: $170,391
- Gross Revenue: $323,631
- EBITDA: N/A
- FF&E: $25,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,600
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
2,600 sf leased. Month-to-Month $2,481
Modified Career Obligations
Business has been highly successful and has a reputation for offering expert, personalized service.
Increasing the breadth of offerings, (business/retirement/investment planning), and additional modern marketing methods, (a website/social media presence etc.), are obvious areas of focus, but the real opportunity is in the demographics. Like much of Nevada, the growth in the community is driven in large part by industry due to an attractive tax and regulatory environment. In other words, Nevada’s new residents, (particularly in this community), skew, disproportionately toward business owners and high net worth individuals. In the Seller’s opinion, the majority of the CPA, tax and accounting professionals in this community are approaching retirement age while need for their professional services is growing. This presents a real opportunity for a focused, energetic CPA to set themselves up in a great practice with a ton of upside.
The business was established in 1999, making the business 23 years old.
The business has 3 employees and resides in a building with estimated square footage of 2,600 sq ft.
The real estate is leased by the company for $2,481 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the genuine reason and the one they tell you may be 2 entirely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of various other factors. This is why it is really vital that you not count absolutely on a seller's word, however rather, use the seller's solution in conjunction with your total due diligence. This will repaint a much more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in new clients? Often times, operating businesses have repeat customers, which develop the core of their daily earnings. Specific aspects such as brand-new competition growing up around the location, road building and construction, as well as personnel turnover can impact repeat customers as well as adversely impact future earnings. One vital point to think about is the placement 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 often, the higher the opportunity to build a returning customer base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood median household income influence future income potential?