Listing ID: 81493
OVERVIEW – ABA Advisors represents this CPA’s tax & accounting practice located in Porter County, Indiana – a.k.a. The Region. The seller wishes to retire from public accounting. The seller is willing to provide transitional assistance to the buyer to help ensure client retention. (JB)
THE PRACTICE – The practice has a good mix of individual tax clients, business returns and bookkeeping clients. Average fees are strong for a practice of this size and there is seasoned staff in place servicing the client base. Business ID: IN-1947
- Asking Price: N/A
- Cash Flow: $79,458
- Gross Revenue: $165,000
- 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 people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you may be 2 totally different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in incomes, or a variety of other factors. This is why it is really crucial that you not count totally on a seller's word, however rather, utilize the vendor's answer in conjunction with your total due diligence. This will repaint a more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that profit margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise 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 contracts with suppliers that must be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new customers? Often times, businesses have repeat clients, which develop the core of their day-to-day earnings. Specific elements such as new competitors sprouting up around the location, roadway construction, and personnel turn over can affect repeat customers and negatively impact future earnings. One important thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to build a returning customer base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Just how might the regional mean house earnings influence future revenue prospects?