Listing ID: 81424

Business Overview

OVERVIEW
ABA Advisors represents this CPA practice located in Northwest New Jersey. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.

THE PRACTICE
The practice has a mix of business and individual clients with tax preparation and accounting services for the businesses, along with a couple Audit clients (representing less than 10% of the revenue). The business is well established and very profitable with a NET available to the buyer more than 75%.

Financial

  • Asking Price: N/A
  • Cash Flow: $185,000
  • Gross Revenue: $250,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1975

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The seller is willing to provide transitional assistance to the buyer to help ensure client retention.

Purpose For Selling:

Seller wishes to retire from public accounting.

Additional Info

The business was established in 1975, making the business 47 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 completely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or an array of various other factors. This is why it is extremely vital that you not rely absolutely on a seller's word, yet rather, utilize the seller's response together with your overall due diligence. This will paint a much more reasonable image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that profit margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new consumers? Many times, companies have repeat customers, which form the core of their everyday profits. Particular aspects such as brand-new competitors sprouting up around the area, roadway construction, and also staff turn over can impact repeat customers as well as adversely impact future revenues. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional median household earnings influence future income potential?