Listing ID: 81444

Business Overview

OVERVIEW
ABA Advisors represents this CPA practice located in Fort Worth, TX. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.

THE PRACTICE
The practice is mostly monthly accounting work (60%) and the balance tax clients (40%). Most of the individual tax clients are related to business clientele (accounting and business tax). This well-established business would allow a CPA to strike out on their own or be a nice addition to an existing practice.

Financial

  • Asking Price: N/A
  • Cash Flow: $68,650
  • Gross Revenue: $110,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 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.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell operating businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 completely different things. As an example, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is really vital that you not depend totally on a vendor's word, however rather, use the vendor's answer along with your total due diligence. This will repaint a more practical picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in brand-new clients? Many times, operating businesses have repeat customers, which develop the core of their everyday revenues. Particular variables such as brand-new competitors growing up around the location, roadway building and construction, and also personnel turn over can impact repeat clients and negatively affect future incomes. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the possibility to construct a returning customer base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood median household earnings influence future earnings prospects?