LIBERTY TAX PARENT COMPANY, NEXTPOINT, ACQUIRES COMMUNITY TAX LLC

Rhea-AI Summary

Liberty Tax, a prominent tax service provider, has announced its acquisition of Community Tax LLC, a leader in tax debt resolution services. This strategic move aims to enhance Liberty Tax's service offerings for franchisees and strengthen its market position as a major player in tax debt settlement. Community Tax, founded in 2010, employs a unique two-phased approach to resolving tax issues and serves both English and Spanish-speaking clients. This acquisition is projected to create significant revenue opportunities for Liberty Tax franchise owners and expand its reach to over 30 million small and medium enterprises.

Positive

• Acquisition of Community Tax enhances service offerings and positions Liberty Tax as a major tax debt settlement company.
• Expands market reach to over 30 million SMEs and 85 million lower-income tax filers in the U.S.
• Potential for increased revenue opportunities for franchise owners.

Negative

• None.

HURST, Texas, Jan. 11, 2022 /PRNewswire/ -- Liberty Tax, a leading provider of tax planning and financial solutions, will add tax debt resolution and more to its suite of services in 2022 due to the acquisition of Chicago-based Community Tax LLC. Liberty Tax's parent company, NextPoint Financial Inc. (TSX: NPF.U & OTC Pink: NACQF), announced the acquisition of the fast-growing leader in tax debt resolution and other related services at the start of the new year.

"Community Tax is the perfect complement to the Liberty Tax suite of services, expanding what our franchisees can offer consumers and business owners," said Brent Turner, CEO of Liberty Tax. "Having already successfully offered its tax resolution services to Liberty customers, we are now positioned as one of the largest tax debt settlement companies in the U.S."

Founded in 2010, Community Tax quickly emerged as a leader in the tax debt resolution industry by leveraging a unique two-phased approach to resolving delinquent tax problems. Community Tax is a true bilingual organization, with both English and Spanish speaking team members across every organizational discipline. The company has offices in Chicago, Jacksonville, and Puerto Rico. 

"There's never been a better time to franchise with Liberty Tax as we expand our service offerings to create as much growth potential for franchisees as possible," said Jeff Stephenson, vice president of franchise development. "The acquisition of Community Tax adds even more lucrative products to the suite of services our franchise owners can provide customers, giving them unprecedented revenue opportunities. For those looking to diversify their portfolio in the franchising space while increasing their earning potential, the time is now."

The move showcases Liberty Tax is more committed than ever to the integration of holistic financial services that benefit the American consumer as well as small and medium business enterprises not well served by traditional financial institutions.

NextPoint estimates its market opportunity includes over 30M SME businesses in the U.S. and Canada, plus roughly 85M lower-income tax filers in the U.S. For more information about Liberty Tax, its suite of services and franchise opportunities, visit libertytax.com.

About Liberty Tax
Liberty Tax, a portfolio company of NextPoint Financial Inc. (TSX: NPF.U & OTC Pink: NACQF), is a tax preparation service with more than 2,700 locations, and serves approximately 1.6 million consumer and small business clients in the United States and Canada. Established in 1997, Liberty Tax is one of the nation's leading tax preparation companies, with franchised locations in every major metro area throughout the U.S. and Canada. For a more in-depth look, visit Liberty Tax Service and on Facebook.

About NextPoint Financial Inc.
NextPoint Financial Inc. is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint was formed through the July 2021 combination of Liberty Tax, a leading provider of tax preparation services, with LoanMe, an online lender and loan marketer. NextPoint's revenue and financial performance currently reflects the seasonality of its large tax preparation business wherein the bulk of its revenue is generated in the first and second calendar quarters of each year.

NextPoint's interim financial statements along with other regulatory documents are filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") www.sedar.com where they may be viewed by shareholders and other interested parties.

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SOURCE Liberty Tax

FAQ

What is the purpose of Liberty Tax's acquisition of Community Tax LLC?

The acquisition aims to enhance Liberty Tax's service offerings by integrating tax debt resolution services, positioning it as a major player in the tax debt settlement market.

When was the acquisition of Community Tax LLC announced?

The acquisition was announced on January 11, 2022.

How does the acquisition of Community Tax LLC impact Liberty Tax's market position?

It strengthens Liberty Tax's market position by expanding its services and targeting a larger customer base, including over 30 million SMEs.

What benefits will Liberty Tax franchise owners see from the acquisition?

Franchise owners are expected to experience unprecedented revenue opportunities through the expanded suite of services offered post-acquisition.

What is Community Tax known for?

Community Tax is recognized for its two-phased approach to resolving tax debt issues and offers services in both English and Spanish.