Listing ID: 83868
Business Overview
Practice Details: Great practice that owner has built for 28 years after taking over from her father who founded it in 1972. This practice has an excellent reputation, loyal customer base and a stable revenue pattern. Owner is willing to stay on temporarily to facilitate a smooth and orderly transition of the business. This is a perfect opportunity for an ambitious CPA to own their own practice by acquiring this established book of business. It would also make for an easy and profitable addition for an established practice looking to expand.
Annual Revenue: 2020: $350K
Owners Cash Flow: 2020: $124K
Revenue breakdown:
Individual and Business tax : $250k
Write-up/Accounting: $80k
Facilities: Free standing office building in rural area but within 30 miles of major metro area. Off street parking. Month to month lease. Two offices plus reception area. 1800 square feet at $800 per month.
Furniture and Equipment: 5 desks, 7 computers, and server phone system, the usual reception furniture and cabinets plus all other equipment and software included in selling price.
Staff: (6) – 1 full time CPA, 3 part time, 2 seasonal.
Software: INTUIT, ULTRA TAX
Financial
- Asking Price: N/A
- Cash Flow: $124,000
- Gross Revenue: $350,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Free standing office building in rural area but within 30 miles of major metro area. Off street parking. Month to month lease. Two offices plus reception area. 1800 square feet at $800 per month.
Owner is willing to stay on temporarily to facilitate a smooth and orderly transition of the business.
Additional Info
The company has 6 employees and is located in a building with disclosed square footage of 1,800 sq ft.
The building is leased by the company for $800 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. However, the real factor vs the one they tell you may be 2 absolutely different things. For instance, they might state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of other factors. This is why it is really essential that you not depend totally on a vendor's word, but rather, make use of the seller's solution along with your general due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new clients? Most times, operating businesses have repeat customers, which create the core of their daily earnings. Specific aspects such as brand-new competitors growing up around the location, road building, and also staff turnover can impact repeat consumers as well as negatively influence future earnings. One crucial thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Just how might the local typical family income influence future income potential?
