Listing ID: 83873
Business Overview
Tax and Accounting Practice FOR SALE
Our Listing # MN 1113
Geographic Location: Minneapolis MN Metro area
Practice Details: Retiring owner seeking qualified buyer for this tax and accounting practice. This firm has been in business over 30 years with an excellent area reputation and loyal client base.
Annual Revenue: Growing Revenue Stream with 2020 at $140,000
.
Revenue Breakdown:
96% personal and business tax preparation
5% other accounting services
Owner Cash Flow: Averaging 55% of Annual Revenue
Facilities: Home Office
Furniture and Equipment: All office furniture, computers, printers, file cabinets etc. included in the selling price.
Staff: The owner will be available for transition support to optimize the client retention.
Software: Quick Books LaCerte
For more information about this opportunity contact: Willow Whitney:
Email willow@accountingfirmsold.com
Phone (414) 962-7773
Fax (920) 355 0175
Financial
- Asking Price: $148,000
- Cash Flow: $77,000
- Gross Revenue: $140,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
All office furniture, computers, printers, file cabinets etc. included in the selling price.
The owner will be available for transition support to optimize the client retention.
Retiring
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the true factor and the one they tell you may be 2 totally different things. As an example, they may state "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of other reasons. This is why it is very essential that you not count completely on a seller's word, but rather, make use of the seller's answer combined with your general due diligence. This will repaint a more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too thin. Lots of businesses fall into 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new customers? Many times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Particular elements such as new competitors sprouting up around the area, roadway building and construction, and also employee turn over can affect repeat consumers and also negatively impact future earnings. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to develop a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the local average home income effect future earnings potential?
