Excellent Clients
This high performing CPA firm, located in North Phoenix, Arizona has $821,000 of recurring revenue with Seller Discretionary Earnings (SDE) of $420,000. The firm has an ideal mix of client relationships with an emphasis on business entities. Well over 60% of the revenue is associated with business clientele and the 1040 clients retained are almost all the owners of an entity doing business with the firm. 1040 returns average $1,300 and the business returns are equally as lucrative. Approximately $212,000 of annual production comes from a set of approximately 25 monthly bookkeeping and accounting clients. These monthly bookkeeping clients are also tax clients adding to the efficiency of tax season. Several full time employees and a principal can move with the acquisition. A 53% cash flow margin provides plenty of cash flow to allow for bank financing. A handful of 8 figure middle market companies and active and expanding small business entities make up an incredible book of opportunity. The principal is willing to stay on in a production role, or can take on the management of the firm for market compensation through 2027. There is no audit or attest work associated with this acquisition.
