Listing ID: 81183

Business Overview

•Accounting, Bookkeeping and tax practice with 34 corporate clients generating 56% of annual revenues; T1- 144 returns representing 44 % of annual revenues;
•One owner CPA, CGA
•Practice was established in 2004, is very profitable and the owner is ready to retire.-
• Excellent cash flow at 59% of adjusted billings
•Software in use: Sage 50, MS Office, Intuit Profile,
•Home based practice.

Financial

  • Asking Price: $199,000
  • Cash Flow: N/A
  • Gross Revenue: $165,000
  • 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 types of reasons why people choose to sell businesses. Nevertheless, the real reason and the one they tell you might be 2 entirely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in earnings, or an array of various other factors. This is why it is extremely important that you not rely totally on a seller's word, but instead, make use of the vendor's solution along with your overall due diligence. This will paint a much more reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. 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 satisfied or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in brand-new customers? Most times, operating businesses have repeat clients, which create the core of their daily profits. Certain aspects such as brand-new competitors growing up around the area, road building and construction, and staff turnover can influence repeat clients as well as negatively impact future profits. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the better the chance to develop a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood typical family income impact future earnings potential?