Listing ID: 81193
Ft. Lauderdale CPAs are selling their profitable practice. The practice services include 6% accounting 93% tax (38% individual, 53% business and 9% other) and 1% other. The practice is in an excellent location and poised for further growth. The estimated revenues and cash flows for 2022 are $702,000 and $385,000, respectively. The selling price is $770,000. The owners will assist with the transition.
- Asking Price: $770,000
- Cash Flow: $385,000
- Gross Revenue: $702,000
- 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 people decide to sell businesses. However, the real reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current decrease in revenues, or a variety of other reasons. This is why it is really crucial that you not rely totally on a vendor's word, yet rather, make use of the seller's response along with your overall due diligence. This will repaint a more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover points like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Often times, operating businesses have repeat clients, which form the core of their everyday profits. Particular factors such as brand-new competition sprouting up around the location, road building and construction, and also personnel turn over can affect repeat clients and also adversely impact future incomes. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to construct a returning consumer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood typical household earnings impact future income prospects?