Listing ID: 81529
ABA Advisors represents this CPA practice located in Camden County, NJ. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
The practice has a good mix of individual and business clients, with tax return preparation, accounting, and general business consulting services offered. The business is highly profitable that should net more than 60% to the Buyer that purchases the business.
- Asking Price: N/A
- Cash Flow: $182,000
- Gross Revenue: $280,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment: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
The company was established in 2001, making the business 21 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell businesses. However, the real factor vs the one they say to you may be 2 completely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, recent decrease in profits, or a variety of other reasons. This is why it is extremely crucial that you not count absolutely on a seller's word, but rather, make use of the vendor's solution together with your general due diligence. This will repaint a much more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that profit margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new clients? Most times, companies have repeat customers, which develop the core of their day-to-day revenues. Certain variables such as brand-new competition sprouting up around the location, roadway building, and also staff turn over can affect repeat consumers as well as negatively affect future incomes. One important point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the regional median house income impact future income potential?