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MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Expand your practice, or get into the business with a solid foundation yet work from home! Johannesburg North client base, a mix of Schools, Businesses and Body Corporate. Long standing client base. Owner emigrating. The business has a mix of clients, 14 businesses/schools/body corporate and about 10 individuals also give her their personal taxes to do.
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How long has the business been established?
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2005
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How long has the owner had the business?
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She started it
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2. Present Market
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How does the business operate on a daily basis
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Owner operated. She does visit 4 clients monthly in the Lanseria Airport area. The rest she does from home, so this is ideal for someone looking for an add on client base to an existing business or to get into the industry or a stay at home mom with and accountancy practice
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How are the clients attracted to the business
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Word-Of-Mouth
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What Advertising/Marketing is carried out
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None
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Does the business have any contract work
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Monthly billed clients, bimonthly billed clients for work done is the core of this practice, on average R25,000 per month. She does not follow the retainer model but a pay for work done model at industry rates.
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What competition exists
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The normal for these type of businesses
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What are the seasonal trends
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Normal trend for the industry
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3. Financial
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Is the business VAT Registered
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No
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What VAT documentation is on file?
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No
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Are there up to date management accounts?
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Monthly billed clients, bimonthly billed clients for work done is the core of this practice, on average R25,000 per month. She does not follow the retainer model but a pay for work done model at industry rates.
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What audited financials are available, income statement and or balance sheets?
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The owner will make it available for serious buyers.
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What is the age analysis of the debtor’s book?
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Some clients pay on 30 days, most earlier on invoice
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How could the profitability of the business be improved?
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The option to do audts, where she outsource that for clients, about R100,000 per annum and then normal expansion.
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Is Seller finance available and for what amount?
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No
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4. Staffing
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What is the total staff complement?
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No Staff
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Staff Breakdown and length of service
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N/A
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Do any receive special perks, bonuses or incentives?
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N/A
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Are they on contract?
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N/A
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Do any have management potential?
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N/A
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How involved is the Owner in running the business
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N/A
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5. Premises
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When does the current lease end?
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No lease, work from home currently, plus you buying the client base
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Is there an option of renewal & what period
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N/A
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What is the annual escalation %?
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N/A
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What are the trading hours?
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N/A
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What is the square meterage of the business?
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N/A
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Is a copy of the lease available?
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Yes
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Do you require a licence?
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To submit on behalf of client to SARS and draft statements you need to belong to either SAIT, SAIPA, SAICA
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6. Assets
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Is a full asset list on file?
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None, only the clients. Seller is keeping the laptop and Pastel.
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Are any items not included in the sale?
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N/A
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What is their overall condition?
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N/A
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Do any require repairing?
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N/A
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How have they been valued?
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N/A
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Which assets are on lease/HP and with whom?
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N/A
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What are their settlement amounts?
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N/A
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Will Seller settle or Buyer to take over?
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N/A
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Are they presently insured?
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N/A
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7. S.W.O.T. Analysis
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Strengths
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Good solid client base with good spread of risk and types of clients
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Weaknesses
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No staff with knowledge and a small base
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Opportunities
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To do audits, expand the base and service offering
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Threats
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None perceived
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8. Reason For Sale
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What is the reason for the sale?
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Seller emigrating
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9. Conclusion
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Why is this a good business to buy?
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Accounting Practice with good long standing client base, northern suburbs of Johannesburg doesn't come on the market often.
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