Listing ID: 81533
OVERVIEW OVERVIEW – ABA Advisors represents this tax practice located in the Loveland/Fort Collins/Greeley, CO area. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
THE PRACTICE THE PRACTICE – The practice has a mix of business and individual tax clients and almost all clients own a business. The average 1040 is over $1,500 and the average business/partnership returns are $900-$1,800 averages. The firm is very profitable and there is a professional staff person that will likely transition with the practice. Business ID: CO-1616
- Asking Price: N/A
- Cash Flow: $285,004
- Gross Revenue: $500,000
- 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.
The seller wishes to retire from public accounting.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. However, the real factor and the one they tell you might be 2 entirely different things. For instance, they might claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is really important that you not depend completely on a vendor's word, yet instead, make use of the vendor's solution combined with your overall due diligence. This will repaint a much more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans so as to cover things such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. 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 may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract new customers? Many times, businesses have repeat customers, which form the core of their day-to-day earnings. Specific factors such as new competitors sprouting up around the location, roadway construction, as well as staff turnover can impact repeat clients and also negatively impact future earnings. One essential thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the chance to build a returning client base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional median household income influence future revenue potential?