Listing ID: 81535
ABA Advisors represents this CPA practice located in the Greater New Haven, CT area. The seller is willing to provide transitional assistance to the buyer to help ensure client retention.
The practice serves individuals and businesses with tax return preparation (90% of the revenue), general accounting, compilations, and tax representation. This well-established and highly profitable business should net more than 70% to the Buyer.
- Asking Price: N/A
- Cash Flow: $287,000
- Gross Revenue: $410,000
- 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 wishes to retire from public accounting.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell companies. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in earnings, or a variety of various other factors. This is why it is extremely vital that you not count completely on a vendor's word, however rather, use the vendor's solution along with your overall due diligence. This will repaint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that earnings margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new clients? Many times, businesses have repeat customers, which form the core of their everyday revenues. Specific variables such as new competition sprouting up around the area, roadway building, and employee turnover can influence repeat clients as well as adversely impact future profits. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the greater the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local average family earnings influence future income potential?