Business Overview

Public Accounting business located in Minneapolis. Business was established 30 years ago, with the current owners (2) for past 25 years. Last tax season they did approximately 1025 tax returns, (900 individual and 125 business returns). The business has 30 payroll accounts, and 10 bookkeeping accounts. In addition, the practice provides a full range of services, including 5 audits (2 single) and attestation services, business consulting, financial and retirement planning, estate and trust planning and IRS representation.

The business uses Lacerte Tax software. For the accounting and bookkeeping they use Quick books and for Audits, Advance Flow.

They provide online services to their clients to assist with the tax process and financial decision making.

The owners work this business full time and are CPA’s. The owner indicates that the business does little to no marketing and the business grew with having a great reputation and providing good customer service.

Financial

  • Asking Price: $625,000
  • Cash Flow: $200,000
  • Gross Revenue: $703,577
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1996

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates in 4000 square feet in a free-standing building. The seller owns the building and property, a buyer can lease or purchase the building. This business is not location dependent and can be moved.

Purpose For Selling:

Retirement

Additional Info

The venture was founded in 1996, making the business 26 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell operating businesses. Nonetheless, the real reason and the one they tell you might be 2 completely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of other reasons. This is why it is really crucial that you not rely totally on a vendor's word, however rather, utilize the seller's solution combined with your total due diligence. This will paint an extra 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 certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover things like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract new customers? Often times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Particular variables such as brand-new competitors growing up around the area, road construction, and staff turn over can affect repeat customers as well as adversely influence future earnings. One important thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning consumer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Exactly how might the local median family income influence future earnings potential?