Full-Service Accounting Firm – Over 1,900 Clients
Management team already in place – Owner provides general oversight!
A solid management team is already in place at this full-service accounting firm in Denver! With $70k in recurring monthly revenue and over 1,900 clients, the company boasts increasing revenue year after year. Providing tax planning & consulting, audit & assurance, and client accounting services, the client base for this CPA firm is nearly 100% recurring; it consists of small businesses, individuals, nonprofit organizations, and homeowner associations. The highly trained and experienced team of 19 employees is split into three departments (Tax, Client Accounting, and Assurance), each with its own manager in place. Service revenue by department is approximately 48% tax services, 32% client accounting, and 20% assurance/audit services, with tax services split evenly between individuals and businesses. These individual departments are generally similar in profit margins, and customer concentration is low. Their top 15 customers receive monthly accounting and annual tax services and are billed $20k-$30k/year.
Based out of a 4,500 sq. ft. office building, all work is conducted locally in the Denver area; however, they work with clients at the national level. The current owner handles general oversight, as well as assisting the tax services department during tax season, and is willing to stay on board for 3-5 years.
Priced at $2,905,000, growth potential for this CPA firm is unlimited. They are in a prime location in Colorado where businesses are growing and thriving. With their ability to serve all types of businesses including start-ups, nonprofit, and homeowner associations, this firm has proven their ability to maintain steady growth in sales and profit margins year after year. Expanding the current client base and increasing services offerings to include retirement plan audits and business valuations would certainly boost revenue.
Year Established: 1993
Location: Denver, Colorado
Service Area: All work is conducted locally; however, they work with clients throughout the country
Services: Tax Planning & Consulting (48%), Client Accounting (32%) and Assurance/Audit (20%) services; tax services are equally split between businesses and individuals
Clients: Small businesses, individuals , nonprofit organizations, homeowner associations
Lease: 4,500 sq. ft.: 85% office space, 15% storage; $10k/month
Reason for Selling: Strategic exit planning; looking to relocate in a few years
Personnel: 19 W2: 15 FT year-round (including 3 department managers), 3 PT, and 1 seasonal, plus subcontractors during tax season as needed (varies based on the year)
Seller Training Period: 3-5 years
Growth Opportunities: Increase service offerings, expand client base
Current Owner’s Responsibilities: Assists tax service department during tax season; general oversight
- List Price: $2,905,000
- 2020 Cash Flow: $725,550
- 2019 Cash Flow: $558,786
- 2018 Cash Flow: $498,679
- 2017 Cash Flow: $343,133
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan-July 2021 Accrual
|Net Income Shown on Financial Statement||$532,007||$429,058||$388,668||$181,800||$107,294|
|Compensation to Owner||$163,000||$247,761||$193,933||$327,646||$250,208|
|11% Tax on total W2 Salaries||$17,930||$27,254||$21,333||$36,041||$27,523|
|Replacement||$-87,500||$-150,000||$-150,000||$-150,000||$-150,000||To replace/retain ownre|
|Health Insurance||$11,200||$19,200||$19,200||$19,200||$19,200||$1600/month for personal plan|
|Property Management||$35,000||$65,000||$60,000||$60,000||$60,000||Paid to spouse's company|
|Cell Phones||$1,610||$2,760||$2,760||$2,760||$2,760||$230/month for personal lines|
|Recruiting/Hiring||$0||$53,249||$0||$0||$0||Non-onward going expenses|
|Seller's Cash Flow = Total Addbacks + Net Income||$680,447||$725,550||$558,786||$498,679||$343,133|
|Profit Margin||36.27 %||27.43 %||24.00 %||24.25 %||21.14 %|
- Revenue has been increasing year after year, with 2021 on track to be their best year yet.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2020 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: