Listing ID: 81173
• The owner is a CPA
• This practice was established in 2013
• Software in use includes Pro Series & QuickBooks
• Approximately 22 bookkeeping clients generating $102,000 in revenue
• Approximately 464 individual tax returns with an average fee of $590 per return
• Approximately 57 business tax returns with an average fee of $1,785 per return
• Approximately 16 other tax returns with an average fee of $347 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $242,820 (proj. 2022)
• Lease expires on December 31, 2022 (lease assumable)
- Asking Price: $625,000
- Cash Flow: $214,374
- Gross Revenue: $521,000
- 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 sorts of reasons why people resolve to sell companies. Nevertheless, the genuine factor vs the one they say to you might be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or a range of other reasons. This is why it is extremely crucial that you not depend completely on a vendor's word, but instead, make use of the vendor's answer combined with your general due diligence. This will repaint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover things such as inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new consumers? Most times, operating businesses have repeat customers, which create the core of their everyday revenues. Certain elements such as new competitors sprouting up around the location, road building, and also personnel turn over can influence repeat customers as well as negatively affect future profits. One vital point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the higher the opportunity to construct a returning customer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the local average household earnings effect future income prospects?