Listing ID: 81495
Well established and very lucrative (50%+ Net) accounting practice for sale. Office space available or the practice could be relocated a reasonable distance to the buyer’s office. Experienced staff in place with an owner who will be available as needed during the transition. Creative Solutions & ATX software in place. This practice has been pre-qualifed 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: N/A
- Cash Flow: $277,110
- Gross Revenue: $506,922
- 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 why people decide to sell companies. Nevertheless, the genuine reason and the one they tell you might be 2 entirely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or an array of other factors. This is why it is really essential that you not depend totally on a vendor's word, but instead, use the seller's answer in conjunction with your general due diligence. This will paint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings margins are too tight. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Many times, operating businesses have repeat customers, which develop the core of their everyday earnings. Specific elements such as brand-new competition growing up around the location, roadway building, as well as employee turn over can affect repeat clients and adversely affect future earnings. One essential point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the chance to construct a returning customer base. A final thought is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the neighborhood average family income impact future revenue prospects?