Listing ID: 81511
Very well established and reputable CPA practice located in a popular, affluent suburb. Experienced staff and solid client fee structure in place. The firm is currently using Creative Solutions for the tax preparation services. The seller is flexible and will be available as needed to help ensure a smooth client transition. 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: $575,388
- Cash Flow: N/A
- Gross Revenue: $479,490
- 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 types of reasons why people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 totally different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is extremely important that you not count absolutely on a seller's word, yet rather, use the seller's response along with your total due diligence. This will paint a much more realistic image of the business's existing scenario.
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. Numerous businesses borrow money with the purpose of covering points such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too small. Numerous businesses fall into 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new clients? Most times, businesses have repeat consumers, which form the core of their daily earnings. Particular factors such as brand-new competition growing up around the location, roadway building, and also staff turnover can affect repeat consumers and also negatively affect future incomes. One crucial point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business often, the better the possibility to develop a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean household earnings influence future earnings prospects?