Listing ID: 81186
• The owner is an EA
• This practice was established in 2000
• Software in use includes Drake, QuickBooks
• Approximately 40 bookkeeping clients generating $83,733 in revenue
• Approximately 230 individual tax returns with an average fee of $221 per return
• Approximately 32 business tax returns with an average fee of $412 per return
• Approximately 10 other tax returns with an average fee of $219 per return
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $71,789 (Proj 2021)
• Lease expires in May, 31, 2022
- Asking Price: $165,000
- Cash Flow: $71,789
- Gross Revenue: $152,000
- 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 businesses. However, the real reason vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to hide the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is very important that you not depend entirely on a vendor's word, however rather, use the seller's response along with your total due diligence. This will paint a more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans so as to cover points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can imply that profit margins are too tight. Many companies 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 think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new customers? Most times, companies have repeat customers, which create the core of their everyday earnings. Particular aspects such as brand-new competitors growing up around the location, roadway building, and also staff turnover can impact repeat clients and also negatively impact future profits. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? How might the regional typical house earnings effect future income potential?