Auditing Firm For Sale In Sandton, IRBA Firm for Sale
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Auditing Firm For Sale In Sandton
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Business For Sale

BUSINESS FOR SALE OVERVIEW


Accounting Practice For Sale

Well established firm located in Sandton servicing both auditing (IRBA) and accounting clients.  The ideal buyer will already be in practice and strong in these fields as an RA to ensure a smooth handover and transition of the clients.  The remaining staff ensures continuity.  The seller will do a proper warranted handover.
 

They supply the full suite of services to their clients 250, through the owner and 9 staff.

ASKING PRICE

5,750,000

Fees Pa Warranted

5,000,000

Expenses Pa

2,460,000

Profit For Year*

2.540,000

*Profit = Seller Discretionary Earning

Established Sizeable Client Base, Very Popular Area


Business Overview

 

1. History Background

Fully describe the business's activities

This firm has longstanding clients for the last 30 years, that are serviced by the seller and his staff. The staff performs the normal day to day tasks and the owner does the high end consulting work. 15% is ongoing monthly work.

How long has the business been established?

30 years

How long has the owner had the business?

Seller started it

2. Present Market

How does the business operate on a daily basis

The owner oversees the operation. The staff does the work and the owner reviews it

How are the clients attracted to the business

Word of mouth

What Advertising/Marketing is carried out

Word Of Mouth.

Does the business have any contract work

Regular monthly clients

What competition exists

Normal competition for the industry

What are the seasonal trends

There is a bit of more work to complete during tax season. Jan and February with annual year ends are obviously busier. August for the provisional tax is also busier

3. Financial

Is the business VAT Registered

Yes.

Are there up to date management accounts?

Yes, current and available.

What annual financials are available, income statement and or balance sheets?

Yes, 2017

What percentage of the business is cash/credit?

Terms of 30 days

What is the age analysis of the debtor’s book?

60 to 90 days

How could the profitability of the business be improved?

Growing it with energetic owner.

Is Seller finance available and for what amount?

Yes, a structured deal will be considered on the following basis:-

(1) Finding an approved Buyer.

(2) The seller will expect an upfront cash payment, of 50% of the purchase price, on the Effective Date.

(3) The Seller will warrant turnover for 12 months, subject to acceptable terms and conditions being established for the owner’s continued involvement in the business.

(4) The balance is payable in monthly payments over 12 months.

The Sellerongoing involvement over the warranty period would need to be agreed upon with the buyer and clearly defined in the agreement.

4. Staffing

What is the total staff complement?

9 staff members that exclude the owner and his wife.

Staff Breakdown

Will be discussed with buyers.

Do any receive special perks, bonuses or incentives?

13th cheque

Are they on contract?

Yes

How involved is the Owner of running the business

The owner is hands-on

5. Premises

When does the current lease end?

Seller owns the premises.

Is there an option for renewal & what period

You can get a lease from the seller.

What is the annual escalation %?

To be discussed

What are the trading hours?

Office Hours

What is the square meterage of the business?

300m2

Is a copy of the lease available?

To be discussed

Do you require a licence?

Yes, professional body, SAICA / IRBA

6. Assets

Is a full asset list on file?

Yes, will be provided. You are buying the Clients & Going Concern.

Are any items not included in the sale?

Paintings and owners’ PC. To be discussed.

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued?

Book Value

Which assets are on lease/HP and with whom?

N/A

What are their settlement amounts?

N/A

Will Seller settle or Buyer to take over?

N/A

Are copies of agreements available?

N/A

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

Loyal, regular, distributed and diverse clients

Staffed with productive staff, high index on Benchmark Valuation

Established for 30 years

Weaknesses

None Perceived

Opportunities

Expand

Marketing and fresh approach to managing clients and staff.

Threats

None Perceived

If there is not a good fit with the clients by the new owner.

8. Reason For Sale

What is the reason for the sale?

The owner is putting his exit strategy into operation

9. Conclusion

Why is this a good business to buy?

Client Retention with the seller's exit strategy, the staff members remaining, profitable. Audit clients in Johannesburg are in high demand, this is a very good opportunity. Be quick or miss it!.



Accounting Clients For Sale, Accounting Practice For Sale, Accounting Block Of Fees For Sale, Audit Firm For Sale, IRBA Firm For Sale

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