Business Overview

• The owner is a CPA
• This practice was established in 2009
• Software in use includes Lacerte, QuickBooks, and Intuit Practice Management
• Bookkeeping clients generate approximately $215,000 in revenue
• Consulting, tax projection, audit and business formation clients generate approx. $60,500 in revenue
• Litigation clients generate approx. $61,000 in revenue
• Approximately 255 individual tax returns with an average fee of $950 per return
• Approximately 68 business tax returns with an average fee of $1,250 per return
• Approximately 46 other tax returns with an average fee of $1,283 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $255,878 (2021)
• Lease expires on November 30, 2024 (lease assumable)


  • Asking Price: $925,000
  • Cash Flow: $255,882
  • Gross Revenue: $795,000
  • 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 sorts of reasons individuals decide to sell businesses. Nevertheless, the real reason and the one they tell you may be 2 totally different things. For instance, they might claim "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or an array of other factors. This is why it is extremely crucial that you not depend totally on a vendor's word, but rather, make use of the seller's response together with your overall due diligence. This will paint a much more reasonable picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract brand-new consumers? Many times, businesses have repeat clients, which form the core of their daily profits. Specific aspects such as brand-new competition sprouting up around the area, roadway building and construction, and personnel turnover can impact repeat consumers and also negatively affect future incomes. One important thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning consumer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the regional typical family earnings effect future earnings prospects?