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80/100· Excellent Demo Listing

Bookkeeping & Advisory Practice

Denver, Colorado, USA Professional Services Established 2014 6 employees

Business VerifiedRevenue VerifiedWhatBiz Verified

Asking price

$610,000

WhatBiz estimated range $878,000 – $1,284,000

Analyze this deal

Business overview

Clients are on monthly retainers with annual increases. The practice runs on standardized workflows and cloud accounting software, and most work is delivered remotely.

Asking price
$610,000
Revenue (TTM)
$820,000
SDE
$255,000
EBITDA
$240,000
SDE multiple
2.39x
Cash-on-cash (unlevered)
41.8%
Recurring revenue
92.0%
Largest customer
8.0%

WhatBiz Score™ breakdown

Overall 80/100 — Excellent. Each dimension is scored independently and weighted.

Profitability100

Seller's discretionary earnings are 31.1% of revenue.

Valuation72

Asking price is 2.39× SDE compared with a common small-business range of roughly 2×–4×.

Financial Health79

12 years of operating history with a 29.3% earnings margin.

Growth Potential69

Reported revenue trend of +14% year over year.

Market Outlook72

Category-level demand outlook based on WhatBiz industry model (sample data).

Owner Independence62

Business is described as semi absentee with 6 employees.

Customer Concentration Risk93

Largest customer represents about 8% of revenue.

Financing Potential100

Seller indicates financing is available (about 25% seller-carried).

Scalability95

92% of revenue is recurring or contracted.

AI / Technology Disruption Risk55

Estimated exposure to automation and AI substitution in this category.

Valuation context

Comparable SDE multiples of 3.30x – 4.75x for Professional Services produce an estimated range of $878,000 – $1,284,000.

  • Recurring revenue: 92% of revenue is recurring or contracted, which buyers pay a premium for.
  • Growth: Revenue growing about 14% supports the upper end of the range.
  • Management in place: A business that runs without daily owner labour is worth more to most buyers.
  • Operating history: 12 years of history reduces perceived risk.
What's included
  • Client retainer agreements
  • Workflow templates and SOPs
  • Staff team
  • Software stack
Growth opportunities
  • Add advisory and tax packages
  • Raise legacy client pricing
  • Recruit referral partners with law and insurance firms
Reason for sale
Owner is moving into a fractional CFO consulting role.
Competition
Fragmented market; retention is the primary competitive factor.

What a buyer should check here

Specific questions to raise with the seller for this listing, based on its reported figures.

  1. Confirm the $255,000 in owner earnings

    Ask for three years of tax returns and the add-back schedule line by line. Owner salary and genuine one-off costs are fair add-backs; ongoing vehicle, phone, insurance or family payroll usually are not.

  2. Price sits below the estimated range (2.39x SDE)

    WhatBiz estimates $878,000 – $1,284,000 for a professional services business with these figures. Ask the seller which comparable sales support their asking price.

  3. Verify the customer mix is as diversified as reported

    The largest customer is reported at 8.0% of revenue. Ask for a revenue-by-customer report for the last 24 months to confirm it.

  4. Test the 92.0% of recurring revenue

    Ask for the contract or subscription list with start dates, renewal terms, churn over the last two years, and whether agreements are assignable.

  5. Plan for the owner's day-to-day role

    The owner is reported as semi-absentee. Price a replacement salary for the hours they work, and check whether any licence, certification or key relationship is held personally.

  6. Check the 6-person team and payroll

    Request tenure, wages against local market rates, and any certification or licence held by individual staff. Agree stay bonuses for key people before closing, not after.

  7. Structure the 25% seller note

    Seller financing keeps the previous owner invested in a clean handover. Negotiate the term, interest rate and any performance offset in the same conversation as the price.

  8. Review the leased premises and the lease

    Check remaining term, renewal options, rent escalations, and whether the landlord will assign the lease to you. A short lease on a location-dependent business is a real risk.

This is demo data provided for product demonstration. Figures are illustrative, are not verified, and are not an offer to sell a business. WhatBiz analysis is educational and is not financial, legal, tax or investment advice.

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