Listing ID: 81505
OVERVIEW – ABA Advisors represents this accounting practice located in Carroll County, MD. The seller 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 there is solid staff in place to assist with the transition. Business ID: MD-1941
- Asking Price: $450,000
- Cash Flow: N/A
- Gross Revenue: $400,000
- 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 sell and move out of the area.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. For instance, they may say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is very crucial that you not depend absolutely on a vendor's word, however rather, utilize the seller's answer together with your overall due diligence. This will repaint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest that revenue margins are too small. Many companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Most times, businesses have repeat clients, which form the core of their everyday profits. Certain aspects such as brand-new competitors growing up around the area, road building, as well as employee turnover can influence repeat consumers as well as negatively influence future profits. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the possibility to construct a returning client base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the local average household income effect future revenue prospects?