Business Overview

• The owner is a CPA
• This practice was established in 1992
• Clients serviced virtually for past 10 years
• Software in use includes Lacerte, FileCenter DMS
• Approximately 120 individual tax returns with an average fee of $642 per return
• Approximately 22 business tax returns with an average fee of $1,932per return
• Approximately 4 other tax returns with an average fee of $956 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $112,450 (2021)
• Lease expires: N/A (home office)


  • Asking Price: $170,000
  • Cash Flow: $112,450
  • Gross Revenue: $123,340
  • 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 types of reasons why people choose to sell businesses. Nevertheless, the real factor vs the one they tell you might be 2 totally different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of other reasons. This is why it is extremely vital that you not depend totally on a seller's word, but instead, make use of the seller's solution combined with your total due diligence. This will paint an extra practical picture of the business's current situation.

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. Numerous companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new customers? Most times, companies have repeat clients, which develop the core of their everyday revenues. Certain variables such as brand-new competition growing up around the location, roadway building and construction, and also personnel turn over can impact repeat customers and also adversely impact future incomes. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the regional average house income effect future revenue prospects?