Annual Revenue: $1,551,193
Net Cash Flow: $1,053,507
This business has an accepted offer. Please view our other Tech Businesses for sale.
This long-established company provides employers and financial institutions with the ability to prepare and file the full range of IRS information returns and annual wage reports documenting payments to recipients, as well as Social Security Administration (SSA) and Affordable Care Act (ACA) returns. It typically serves 1,900-2,000 customers annually, including Fortune 1000 and smaller corporations, colleges, universities, and federal/state/municipal agencies.
Customers can directly distribute completed tax forms to recipients. Alternatively, they can have the company print and mail them to recipients or file them electronically. Among the broad array of features available to customers are the ability to: validate taxpayer identification numbers, flag errors prior to filing returns, quickly and easily correct errors after filing, file combined federal/state returns, and electronically file state wage reports.
Because customers can choose to purchase only the services they need, the company enjoys a significant pricing advantage over competitors that bundle multiple services. A cornerstone of the company’s success has been the immediate visual technical support it provides, enabling customers to avoid penalties and interest charges for failing to meet filing deadlines. In addition to revenue derived from services, the company sells tax forms and related stationery.
With no advertising, growth has been driven primarily by repeat and referral patronage. Because it provides a compliance service —vs. a discretionary service, the business is highly resistant to economic downturns. The buyer will be “inheriting” a preeminent brand that should continue to yield outstanding results with its current offerings. However, a major untapped revenue opportunity lies in adding services customarily provided by CPAs. The seller is receptive to continuing his involvement with the business after the sale and overseeing the development of those services.