Listing ID: 81517
OVERVIEW – ABA Advisors represents this CPA practice located in the Fairfax, VA area. 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 solid for a practice of this size and there is seasoned staff in place to assist with a smooth transition. Business ID: VA-1836 Business ID: VA-1836
- Asking Price: $715,000
- Cash Flow: N/A
- Gross Revenue: $550,000
- 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.
Partners wish to focus on other business interests.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nevertheless, the real reason vs the one they say to you might be 2 absolutely different things. For instance, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is very essential that you not rely totally on a vendor's word, but rather, make use of the seller's solution together with your overall due diligence. This will repaint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that earnings margins are too thin. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new consumers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day earnings. Particular aspects such as new competition sprouting up around the location, roadway building and construction, as well as employee turn over can affect repeat clients and also negatively influence future revenues. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the chance to build a returning customer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? How might the local typical house earnings influence future earnings prospects?