Listing ID: 83879
SW Chicago Suburbs, Tax and Accounting Practice For Sale
Geographic Location: Southwestern Chicago suburb, Will County boarding Cook County – Bedroom Community – Eight minutes to the train
Practice Details: This well-established CPA practice for sale produces gross revenues of approximately $376,000, which are nicely balanced between tax (37%), accounting (44%), and payroll (17%) to provide year-round income. Also available to the right buyer is an established Financial Services book of business.
Ideally located in an area known for a high-quality life, higher median income, and strong growth, this reputable practice serves a loyal client base that should generate referrals and expand services opportunities.
It has a solid fee structure and produces strong cash flow to the owner of more than 70% of gross. This turn-key practice is primed for a new owner, a smooth transition, and continued growth.
It would be the perfect size for an experienced individual CPA ready to jump into practice ownership or would make a profitable addition to another established firm looking to expand in this market.
Annual Revenue: $376,000
Owners Cash Flow: $263,000
Individual and Business tax preparation: 37%
Average Bill Rate: $250/hr
Facilities: Architecturally appropriate, a free-standing condo office building on the main street.
Three first-floor office spaces with handicap accessible restrooms.
Parking in front and back. Convenient to business clients and local restaurants.
Currently owned by the practice Seller.
Furniture and Equipment: Networked Computers, work stations, and a full complement of office furniture, printers, copiers, plus all other equipment and software included in selling price.
Staff: Owner + one FT + two PT
- Asking Price: $429,000
- Cash Flow: $263,000
- Gross Revenue: $376,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Architecturally appropriate, a free-standing condo office building on the main street. Three first-floor office spaces with handicap accessible restrooms. Parking in front and back. Convenient to business clients and local restaurants. Currently owned by the practice Seller.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. However, the true factor and the one they say to you might be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of various other factors. This is why it is really essential that you not count totally on a vendor's word, yet rather, use the seller's response in conjunction with your overall due diligence. This will paint a much more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too thin. Many businesses fall 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 may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Certain factors such as new competitors growing up around the area, roadway construction, as well as staff turn over can affect repeat clients as well as adversely affect future revenues. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical home earnings influence future income prospects?