Listing ID: 81476
ABA Advisors represents this CPA practice located along the Austin to San Antonio corridor in Texas. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
The practice has a good mix of individual tax clients, as well as business clients that have accounting and tax preparation completed for. Average fees are solid for a practice of this size and should make a nice addition to an existing firm or allow an experienced accountant to strike out on their own, with the high NET available to a buyer.
- Asking Price: N/A
- Cash Flow: $162,500
- Gross Revenue: $325,000
- 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.
Seller wishes to retire from public accounting.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. However, the true factor and the one they tell you might be 2 absolutely different things. For instance, they may claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competitors, current reduction in incomes, or a range of other reasons. This is why it is extremely important that you not rely totally on a seller's word, however rather, utilize the seller's solution combined with your general due diligence. This will paint a more sensible picture 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 have reason to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that revenue margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new consumers? Often times, businesses have repeat customers, which create the core of their day-to-day revenues. Specific variables such as brand-new competitors growing up around the location, road building, and also employee turnover can impact repeat customers as well as negatively affect future incomes. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the greater the possibility to construct a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood average household income effect future earnings prospects?