Listing ID: 81527
OVERVIEW – ABA Advisors represents this CPA firm located in SW Indiana. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
THE FIRM – The firm has a good mix of tax, consulting and attest services. Average fees for individual tax returns are $445 and the average corporate returns are $1,280. The firm is profitable and there is solid staff in place to allow for a turn-key acquisition. Business ID: IN-1722
- Asking Price: N/A
- Cash Flow: $829,625
- Gross Revenue: $1,400,000
- 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 is retiring.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nevertheless, the true factor vs the one they say to you might be 2 entirely different things. As an example, they might state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in earnings, or a range of various other reasons. This is why it is really crucial that you not count completely on a vendor's word, however instead, utilize the vendor's response together with your total due diligence. This will repaint a much more realistic image of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that revenue margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Many times, companies have repeat consumers, which develop the core of their everyday revenues. Certain elements such as new competition growing up around the area, road building and construction, and also personnel turnover can affect repeat clients as well as adversely influence future revenues. One vital thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the better the possibility to construct a returning customer base. A last idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the local average home income impact future revenue prospects?