Listing ID: 81487
ABA Advisors represents this CPA practice located in Ft. Myers, FL. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
The practice has primarily business clients, with monthly accounting, payroll, and tax preparation services, along with the individual returns associated with the business clientele. Average fees are high for a practice of this size and should net more than 70% to the Buyer that purchases the business.
- Asking Price: N/A
- Cash Flow: $280,000
- Gross Revenue: $350,000
- 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 kinds of reasons why people decide to sell companies. Nevertheless, the real factor vs the one they say to you might be 2 absolutely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of various other reasons. This is why it is very essential that you not count absolutely on a vendor's word, yet rather, utilize the seller's response combined with your general due diligence. This will repaint a more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover points like supplies, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too tight. Lots of companies fall into 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 equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new customers? Often times, operating businesses have repeat customers, which create the core of their daily revenues. Certain variables such as new competitors sprouting up around the area, road construction, and staff turn over can influence repeat clients and negatively impact future profits. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the chance to construct a returning customer base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local median house earnings effect future revenue potential?