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ACQUISITION
OPPORTUNITY S-1721
Accounting
Practice (CPA)
This
well-established Cincinnati based professional services firm serves
small business clients and individuals. The firm serves over 225
small business clients and over 600 individuals with a broad range of
professional services, including traditional financial statement
preparation and tax work, along with many business advisory services
that include complex tax negotiation and offer in compromise work, new
business consultations, payroll tax applications, bankruptcy
accounting, cafeteria plan administration, computer technology
training and assistance, and a full complement of related services.
The
firm’s full-time staff includes two CPA’s, an accounting and tax
supervisor, a junior accountant and three administrative personnel.
The firm derives its revenues from approximately 47% tax, no audits,
23% compilation and review, 25% from consulting and advisory services.
During this firm’s recent five year history, average billings have
grown 10% to 20% per year, and 2001 revenues are projected at $450,000
to $475,000.
HIGHLIGHTS:
- Long
established and well diversified CPA practice.
- Broad
range of business clients and individuals. The top 25
clients account for less than 32% of the Firm’s overall
revenues.
- Consistent
growth through referrals from existing clients and expansion of
business advisory services.
- The
acquisition of this practice by an experienced CPA or the merger
of the Firm into an established practice will provide an ongoing
revenue stream and the opportunity to grow the business through
increased billings.
- After
twenty-eight years in public accounting, the owner has decided to
retire and pursue a non-competing business venture.
PURCHASE
PRICE:
This
CPA practice is available as an asset purchase free and clear of debt
and all liabilities for $495,000. Terms are $250,000 cash at
closing, plus $245,000 seller financing based on client retention.
ASSETS
INCLUDED IN THE SALE:
Furniture, Fixtures and Equipment (Cost)
$ 80,000
Accounts Receivable & Work-In-Progress
$ 75,000
Client List, Trade Name, Goodwill
$340,000
TOTAL
$495,000
FINANCIAL SUMMARY:
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2001E |
2000 |
1999
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1998
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| Billings |
$450,000-
475,000 |
$398,000 |
$371,000 |
$304,000 |
| ACF |
125,000 |
111,000 |
82,000 |
99,000 |
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ACF
(Adjusted Cash Flow) is the pretax cash flow of the company
prior to expenses of seller’s salary, depreciation, and
certain seller discretionary expenses that will be eliminated
upon the sale of the business.
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