Business Overview

• The owner is a CPA
• This practice was established in 1982
• Software in use includes UltraTax and ATX
• 1 bookkeeping client generates $11,000 in revenue
• Approximately 12 consulting clients generate $10,000 in revenue
• Approximately 214 individual tax returns with an average fee of $436 per return
• Approximately 18 business tax returns with an average fee of $1,054 per return
• Approximately 30 other tax returns with an average fee of $546 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $127,080 (2021)
• Lease expires on N/A – home office


  • Asking Price: $190,000
  • Cash Flow: $127,080
  • Gross Revenue: $150,000
  • 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 choose to sell businesses. However, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they may say "I have too many various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competitors, current decrease in revenues, or a variety of various other reasons. This is why it is very essential that you not depend totally on a vendor's word, yet rather, make use of the seller's answer combined with your total due diligence. This will paint a much more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that profit margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new clients? Many times, companies have repeat consumers, which form the core of their daily profits. Particular aspects such as new competition growing up around the location, roadway construction, and also personnel turn over can influence repeat clients and negatively impact future incomes. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood typical family earnings effect future earnings prospects?