Posted on Tue, Aug 17, 2010
Growing Book of Business
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520-327-4454
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Asking Price: $144,000
Annual Revenue: $119,844
Discretionary Earnings: $46,047
This growing tax practice for sale in Tucson Arizona has a 95% retention rate. Most of the revenues come from tax return income with 25% from accounting and consulting services. This was a home based business but moved into a shopping center location in a growing area in East Tucson in October of 2009. Seller is an enrolled Agent and would prefer to have a buyer who is an enrolled agent or a CPA. Clever advertising, representation of clients against the IRS, and an excellent web site as well as 4 times per year contact with clients have increased his revenues in the first two months of 2010 by 30-40% over the prior year’s same period. The groundwork has been laid and his systems are in place. This is a great business opportunity to reap the rewards! Seller is willing to transition thru the next tax season. How this is done is negotiable.
Reason for selling: seller is moving.
Facility Size: 1200 sq ft
Lease: $2,700 / month @ 10 months CAMS $648 / month
Lease Term: Expires 2014 with 5 year option to renew
Seller financing: Available with a large downpayment
Business Hours: Tax Season: M-F 8:00am - 7:00pm. Sat 8:00am - 5:00pm Rest of year: M-F 9:00am - 4:00pm
Employees: 1 Part-time
Licenses required: prefers EA or CPA
Business Structure: S-Corp
Seller training: Negotiable
Other: Will sell just book of business, or as ongoing business in current location.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Sat, Oct 03, 2009
If you are considering selling a business in Tucson or Southern Arizona, or making a Tucson Business Investment, another critical aspect of your business that needs to be in order before you sell is your Income Statement.
Don’t wait until you are ready to sell, or need to sell, your business to invest the time and resources in ensuring that your income statement (and all of your accounting records) is thorough, accurate and consistent in the methods applied. If someone else, perhaps a book-keeper or CPA, has been doing your bookkeeping for you and you perhaps have only been reading top-line reports, you may not be aware of how entries are being booked.
Review the Income Statement and understand each of the entries. Dig in to the General Ledger to thoroughly understand what sub accounts and line items are being rolled up into each Income Statement Summary line, for both revenues and expenses.
Pay particular attention to what is included in the different expense accounts. Someone considering buying a business in Tucson or Southern Arizona, or making a Tucson Business Investment, will expect a detailed explanation of all expenses and will be looking for discretionary items that can be added back to income. Make sure you have recorded these, and kept back up receipts for spot check and cross reference during due diligence.
Make sure the Cost of Goods sold is accurate based upon accurate inventory amounts and purchase prices. If current prices of major inputs have changed since the time your raw material inventory was purchased, make sure to make a buyer aware of that and its materiality to the business.
We believe It can be well worth the expense to hire an outside bookkeeper or CPA to look over your bookkeeping processes and advise you on an changes in your procedures that may be advisable or necessary.
Again, don’t wait until you want or need to sell to commit to accurate accounting records. The Income Statement is the first place a buyer will go, and yours better be able to stand up to scrutiny during due diligence or you may lose the deal. Then, you’ll be hiring a forensic CPA to go back in time and clean things up. It is easier and more cost-effective to do things right the first time.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Fri, Oct 02, 2009
If you are like most small business owners who have ever thought about selling your business in Tucson or Southern Arizona, you have probably asked yourself on many occasions “I wonder how much my business is worth.”
A small business is typically the owner’s principal asset, aside from a home. And yet, surprisingly few business owners in Tucson or Southern Arizona thinking of selling a business put themselves in the shoes of a potential buyer when asking that question.
The value of your business will be determined by the market. In other words, the asking price is what the seller wants, and the sale price is what the seller gets from a buyer. The amount that a buyer may be willing to pay for your business is a direct consequence of the money they believe your business will put in their pocket. Buyer’s have a number in mind, a desired rate of return. And they have many investment options available to them when making a Tucson or Southern Arizona business investment. How will you demonstrate to them the potential cash flow that your business offers a buyer in exchange for their investment?
The answer: by showing the buyer accurate and verified financial and accounting records.
Don’t wait until you think you want or need to sell your business in Tucson or Southern Arizona to begin organizing and standardizing your accounting records. There is nothing that will discourage a buyer wanting to make a Tucson or Southern Arizona business investment more from further evaluating the purchase of your business than incomplete, inaccurate, or unprofessional accounting practices and records. If you put yourself in the buyer’s shoes, you would expect the same.
Seek the advice of a professional CPA in order to review and standardize your accounting practices, and, if you have not already, invest in a small business accounting software such as Quickbooks that most buyers will be familiar with. Make sure that any personal expenses that were charged to the business are clearly disclosed or annotated as such, to make the process of explaining to a prospective buyer the true Discretionary Income generated by your business clear and direct. Keep a file containing those receipts for future cross-reference and spot check by a potential buyer during due diligence. If a buyer wanting to make a Tucson or Southern Arizona Business Investment can quickly understand the financials of your business and find them trustworthy, they are much more likely to move to the next stage of evaluation.
Don’t wait until you need or want to sell a business in Tucson or Southern Arizona to invest the time in developing accurate, standardized and systematized accounting records. Having them will allow you better visibility into your business, and lead to better decision making that will increase it’s value. It will also allow you to immediately show a buyer that your business is worthy of their consideration.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com