Listing ID: 81519
Well established and very profitable CPA practice with a nice mix of client services. Solid fee structure and experienced staff in place. The seller is flexible and will be available to assist the buyer as needed to help ensure a smooth client transition. The firm is currently using Creative Solutions software for the accounting and tax preparation services. Fabulous SBA financing options available to qualified buyers.
- Asking Price: N/A
- Cash Flow: $331,547
- Gross Revenue: $700,000
- 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 kinds of reasons people resolve to sell companies. Nevertheless, the genuine factor vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a range of various other reasons. This is why it is very vital that you not rely completely on a seller's word, but instead, make use of the seller's solution in conjunction with your overall due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering things such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that earnings margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new clients? Many times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Specific aspects such as new competition sprouting up around the area, road building, and also staff turnover can impact repeat customers as well as adversely influence future revenues. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the higher the chance to construct a returning customer base. A final idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional average family income impact future income potential?