Listing ID: 81159
Jacksonville accountant is selling a profitable accounting and tax practice. The practice services include 33% accounting, 66% tax, and 1% other revenue. The expected revenues and cash flows for 2022 are $255,000 and $190,000, respectively. This practice can be operated by one individual with continued growth in expected in the future. The selling price is $255,000. The owner will assist with the transition.
- Asking Price: $255,000
- Cash Flow: $190,000
- Gross Revenue: $255,000
- 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 why individuals decide to sell companies. Nonetheless, the true reason and the one they tell you might be 2 totally different things. As an example, they might state "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a variety of various other reasons. This is why it is extremely important that you not depend entirely on a seller's word, yet rather, use the vendor's solution combined with your overall due diligence. This will paint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that profit margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might 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
How do businesses in the location bring in brand-new consumers? Most times, businesses have repeat customers, which create the core of their daily earnings. Specific variables such as brand-new competitors sprouting up around the location, road building and construction, as well as employee turnover can affect repeat customers as well as adversely affect future revenues. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the chance to construct a returning client base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the local mean household income effect future income prospects?