Listing ID: 81137
Pompano Beach CPA Practice for Sale
- Asking Price: $120,000
- Cash Flow: $70,000
- Gross Revenue: $110,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the true factor vs the one they tell you may be 2 completely different things. For instance, they might state "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in revenues, or an array of other factors. This is why it is really essential that you not depend absolutely on a vendor's word, however instead, use the seller's answer together with your overall due diligence. This will repaint a much more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover points such as inventory, payroll, accounts payable, etc. Remember that in some cases this can suggest that revenue margins are too tight. Numerous 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 consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new clients? Most times, operating businesses have repeat consumers, which develop the core of their daily profits. Certain elements such as new competition growing up around the location, roadway building, as well as personnel turn over can influence repeat consumers and adversely influence future revenues. One important thing 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? Obviously, the more individuals that see the business regularly, the better the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the local mean house income impact future income potential?