Business Overview

• The owner was a CPA
• This practice was established in 1995 as a Partnership; 2016 as a Sole Prop
• Software in use includes Lacerte
• Approximately 224 individual tax returns with an average fee of $978 per return
• Approximately 33 business tax returns with an average fee of $3,351 per return
• Approximately 9 other tax returns with an average fee of $787 per return
• Approximately $70,500 in revenue via consulting, tax planning, amended returns, special projects, etc.
• Annual cash flow including owner’s salary and benefits, personal vehicles, and any other non-operational expenses of the business: $226,324 (2021)
• Lease expires on N/A. Seller owns the building and is open to leasing the office space to the buyer, if needed.


  • Asking Price: $485,000
  • Cash Flow: $226,324
  • Gross Revenue: $400,000
  • 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 people decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 completely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, current decrease in revenues, or a range of various other reasons. This is why it is very essential that you not rely entirely on a seller's word, however instead, utilize the vendor's answer along with your total due diligence. This will repaint an extra reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that revenue margins are too small. Lots of organisations fall into 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 take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new clients? Many times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain factors such as brand-new competitors sprouting up around the location, roadway building and construction, and personnel turnover can impact repeat consumers as well as negatively influence future profits. One essential point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the possibility to build a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the neighborhood mean home income effect future earnings prospects?