Listing ID: 81501
OVERVIEW – ABA Advisors represents this CPA practice located in the Daytona Beach, FL area. The seller is willing to provide transitional assistance to the buyer to help ensure client retention. (CH)
THE PRACTICE – The practice has good mix of business clients and individual tax clients. Average fees are solid for a practice of this size. The average 1040 is $421 and the average business tax return is $937. Business ID: FL-1942
- Asking Price: N/A
- Cash Flow: $186,074
- Gross Revenue: $385,000
- 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.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. Nevertheless, the genuine reason vs the one they tell you might be 2 entirely different things. As an example, they might state "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in incomes, or an array of other factors. This is why it is really important that you not depend totally on a vendor's word, yet rather, utilize the vendor's response in conjunction with your total due diligence. This will paint a much more sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new customers? Often times, businesses have repeat consumers, which form the core of their everyday earnings. Certain factors such as new competition sprouting up around the location, roadway building and construction, as well as staff turnover can affect repeat clients and also negatively influence future profits. One vital point to consider 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 on a regular basis, the greater the chance to construct a returning client base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the regional average household earnings effect future revenue prospects?