Practice For Sale In Northern Coastal South Carolina

Price: $1,100,000

Location: Northern Coastal South Carolina

Industry: Accounting and Tax Practices

Listing ID: 06

Listing Status: New

Description

Two-partner firm located in Northern Coastal, SC, generating $1.1 million in revenues. One partner is seeking to work full time for one year then start a buyout with an ongoing reduced role for the next 2 tax seasons. The other partner seeks five years full time involvement. The firm has one manager with strong ties to the community and is socially active soliciting clients.
Due to the predominantly tourist nature of the location and no one industry concentration, the firm is diversified. Eight of the top eighteen clients are involved in restaurant & hospitality business. The firm also provides service to clients involved in the construction industry. In addition to the stand alone 1040s listed on the attached data sheet, about 200 1040s are prepared for clients related to their business clients. Many clients own multiple entities.
The firm’s senior staff is strong (two senior partners, one manager, one senior), and we recommend the retention of the full staff by the successor firm. The firm’s building is owner occupied with no formal lease.
The owners are seeking a Two-Stage deal. During stage one they expect to be kept whole in income provided their billable hours and client billings remain steady. If their time commitment or billing decrease, a ratable reduction in their compensation is expected. At the time the owners hit the backdates listed above for their retirement from full time, their buyout payments should commence. The owners are seeking a valuation based on a 1x multiple of revenues and are open to a five-year payout with the retention period yet to be determined, structured in a manner that provides the successor firm a current deduction as the payments as made. The owners also expect to receive a new business incentive clause that would reward their rainmaking skills during while working and during the buyout period. Once their buyout commences, the owners expect to be available for part time work for the successor firm based on mutual agreement which should also assist in maximizing client retention.

LISTING DETAILS

Total Sales: $1,100,000

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LISTING BROKER

Todd Steinberg

Todd Steinberg