Listing ID: 81458
Business Overview
OVERVIEW – ABA Advisors represents this CPA firm located in SW Kentucky. The seller wishes to retire from public accounting and is willing to provide transitional assistance to the buyer to help ensure client retention. THE PRACTICE – The firm has a good mix of monthly and quarterly accounting clients, individual and business tax clients and some audit revenue. The firm is very profitable. There is staff in place to assist in a smooth transition. Business ID: KY-1946
Financial
- Asking Price: N/A
- Cash Flow: $607,618
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
The seller wishes to retire from public accounting.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 totally different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a range of various other factors. This is why it is extremely important that you not rely entirely on a vendor's word, but rather, utilize the vendor's response along with your general due diligence. This will paint an extra sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover items such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that profit margins are too tight. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Most times, companies have repeat consumers, which develop the core of their daily profits. Particular elements such as brand-new competition growing up around the location, roadway construction, and personnel turn over can affect repeat consumers and adversely affect future incomes. One vital thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A last thought is the general area demographics. Is the business located in a largely populated city, or is it located on the outside border of town? How might the local typical family income influence future earnings potential?
