Listing ID: 81497

Business Overview

OVERVIEW – ABA Advisors represents this tax & accounting practice located in Colorado Springs, CO. The seller wishes to retire from public accounting and is willing to provide transitional assistance to the buyer to help ensure client retention.
THE PRACTICE – The practice has primarily individual tax clients, with some business returns and bookkeeping clients. Average fees are high for a practice of this size and should net nearly 60% to the Buyer that purchases the business. Business ID: CO-1945

Financial

  • Asking Price: N/A
  • Cash Flow: $164,376
  • Gross Revenue: $300,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

The seller is willing to provide transitional assistance to the buyer to help ensure client retention.

Purpose For Selling:

The seller wishes to retire from public accounting.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is extremely essential that you not count completely on a seller's word, but instead, utilize the seller's answer combined with your overall due diligence. This will repaint a more sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that revenue margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be met or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new clients? Most times, companies have repeat consumers, which form the core of their daily earnings. Certain factors such as new competition sprouting up around the area, roadway building, and staff turnover can impact repeat customers and also negatively influence future incomes. One crucial thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to construct a returning client base. A final idea is the general area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the local typical family income impact future income potential?