Listing ID: 83876
Geographic Location: Central TN
Long-standing, stable practice, single owner CPA is ready to sell.
The Practice has been in business over 22 years with an established and diversified client base.
Annual Revenue: $287,000
Owners Cash Flow: $118,000
Individual and Business tax preparation: 67% (27% Business / 40% Individual)
Average Tax Return: >$325
Average Write-up Client: >$9,000
Facilities: Excellent location.
Wishes to sell however is open to leasing space to the new practice owner.
Furniture and Equipment: Networked Computers, workstations and full complement of office and conference room furniture, printers, copiers, plus all other equipment and software included in selling price.
Staff: One seasoned Professional plus part-time Office Manager. Seasonal interns available from local university.
Software: Lacerte and Quickbooks
- Asking Price: $287,000
- Cash Flow: $11,800
- Gross Revenue: $287,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Excellent location. Owner owned. Wishes to sell however is open to leasing space to the new practice owner.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nevertheless, the real factor and the one they tell you may be 2 entirely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in earnings, or a variety of other reasons. This is why it is really vital that you not count completely on a vendor's word, however instead, make use of the seller's response together with your overall due diligence. This will paint an extra sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover items like stock, payroll, accounts payable, etc. Remember that in some cases this can imply that revenue margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract brand-new consumers? Often times, businesses have repeat consumers, which form the core of their everyday earnings. Particular variables such as brand-new competitors growing up around the area, road building and construction, and also staff turnover can influence repeat customers and adversely impact future earnings. One essential point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the greater the chance to construct a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the local mean home earnings effect future revenue prospects?