Business Overview

• This practice was established in 2000
• Software in use includes Thomson Reuters CS & UltraTax
• Bookkeeping clients generate $325,608 in revenue
• Approximately 683 individual tax returns with an average fee of $168 per return
• Approximately 70 C-Tax returns with an average fee of $486 per return
• Approximately 15 LLC returns with an average fee of $425 per return
• Approximately 8 Nonprofit returns with an average fee of $416 per return
• Approximately 14 Partnership returns with an average fee of $326 per return
• Approximately 5 Tax Projections with an average fee of $205 per return
• Approximately 10 Trust returns with an average fee of $224 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $172,441 (2021)
• Lease expires on June 30, 2023 (lease assumable)


  • Asking Price: $575,000
  • Cash Flow: $172,441
  • Gross Revenue: $500,000
  • 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 types of reasons people choose to sell companies. Nonetheless, the real reason and the one they say to you may be 2 completely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or an array of other factors. This is why it is really crucial that you not count completely on a vendor's word, however rather, use the vendor's answer in conjunction with your total due diligence. This will repaint a more reasonable picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new clients? Often times, businesses have repeat consumers, which form the core of their day-to-day revenues. Specific elements such as new competition growing up around the area, road construction, as well as employee turnover can impact repeat consumers and also negatively influence future incomes. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the chance to develop a returning customer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional average house earnings impact future revenue potential?