Listing ID: 81509
OVERVIEW – ABA Advisors represents this CPA practice located on the north side of Chicago, IL. The seller is willing to provide transitional assistance to the buyer to help ensure client retention. (CH)
THE PRACTICE – The practice has a good mix of individual tax clients, business tax clients and accounting/bookkeeping work. Average fees are over $400 for the individual tax clients and $1,200-$1,400 for the corporate and partnership returns. There is staff in place that are expected to transition with the practice. Business ID: IL-1619
- Asking Price: N/A
- Cash Flow: $157,281
- 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.
Seller wishes to retire from public accounting.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. For instance, they may say "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competition, current reduction in incomes, or a variety of various other factors. This is why it is very vital that you not count absolutely on a seller's word, however instead, make use of the seller's response along with your total due diligence. This will paint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that earnings margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new customers? Often times, companies have repeat customers, which create the core of their day-to-day profits. Particular elements such as brand-new competition sprouting up around the location, roadway building and construction, and also personnel turn over can impact repeat customers and also adversely influence future earnings. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the greater the opportunity to develop a returning customer base. A final thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood mean home earnings influence future income prospects?