Listing ID: 81485
Well established CPA practice with loyal clientele. Ideal turnkey opportunity with professional office, staff and equipment in place. The seller is flexible and will be available to assist in the transition as needed. Thomson Reuters and QuickBooks software in place. This practice has been pre-qualified by our lenders for outside bank financing. Additional funds for working capital and equipment as well as acquisition costs are available to qualified buyers.
- Asking Price: $423,772
- Cash Flow: N/A
- Gross Revenue: $403,593
- EBITDA: N/A
- 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 kinds of reasons people resolve to sell companies. Nevertheless, the true factor vs the one they say to you may be 2 absolutely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competition, current reduction in profits, or a variety of other factors. This is why it is extremely crucial that you not count totally on a vendor's word, however instead, utilize the seller's answer together with your overall due diligence. This will paint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover items like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new consumers? Most times, businesses have repeat clients, which develop the core of their daily earnings. Certain variables such as brand-new competitors sprouting up around the area, roadway building and construction, and staff turnover can affect repeat customers and also adversely impact future revenues. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional median home earnings impact future earnings prospects?