History and Overview Of The Business
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Fully describe the business's activities |
This is a modern and innovative accounting firm focusing on Accounting, Tax, Payroll, Advisory and Training. They have various clients and as SAIPA ATC and FASSET approved have access to clerk to drive profitability up. 100% Black owned practice with a Level 1 BB-BEE status and nice clients this is the ideal opportunity for an energetic and focused BEE buyer that would like to build on this platform |
When was the business established? |
Since 2009, and since 2012 in the current format |
How long has the owner had the business? |
Established it |
How Does The Business Operate
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How does the business operate on a daily basis |
Owner run with staff doing the actual work |
How are the clients attracted to the business? |
Word Of Mouth |
What Advertising/Marketing is carried out? |
None |
Does the business have any contract work? |
No, but most clients are on monthly retainers |
What competition exists? |
Normal
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Seasonal Trends? |
Busier in tax season |
Financial Information
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Vat Registered? |
No |
Vat Documentation on File? |
Not registered |
Management Accounts? |
Yes |
Audited Financials? |
No, only management accounts |
What as Cash/Credit Split? |
Credit |
Debtors Book Age Analisys |
30 days |
How can you improve the profitability? |
Expand client base. Approach other occupants of the Incubation Hub as none of them are actually clients of this firm. |
Is Seller Finance available and if so what is it? |
Yes, in line with selling accounting practices the seller will accept a 50% cash payment and subject to a proper hand over and turnover warranty the balance over a 12 month period to an APPROVED buyer. A structured deal will thus be considered. |
Staffing Of the Business
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What is the total number of Staff? |
4 staff members excluding owner |
Staff Breakdown |
4 Staff members. All learnership funded by Fasset for 18 months |
Staff Special Perks and Bonuses? |
No |
Are the staff on Contract? |
No |
Does any of the staff have management potential? |
No |
How involved is the Owner in running the business? |
Hands-on |
Premises Of the Business
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When Does the Current Lease ends? |
Lease end in Feb 2018 |
Is there an option to renew? |
Feb 2018 but with renewal option. 12 months from 1 Feb 2017 with renewal option up to 3 years. Thereafter the subsidy for the lease falls away |
What is the annual escalation % |
10% |
What are the Trading Hours? |
08:30 - 17:00 5 days per week |
What is the square meters? |
70m2 |
Is a copy of the lease available? |
Yes, on file |
Do You require a license? |
SAIPA ATC |
Assets Of The Business
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Full Asset List available? |
Yes, owner will provide |
Anything not included in the sale? |
Some assets belongs to the seller but in the name of the practice. Private vehicle, private house and some computer equipment |
What is condition of the assets |
Good, none needs repairing |
Any Assets on Lease/HP that Buyer needs to take over? |
No |
Are they insured at the moment? |
Yes |
SWOT Of The Business
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STRENGHTS |
Monthly retainer clients
Cloud Based Practice - Sage One
Partnerships with various agencies and Sage
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WEAKNESSES |
Not enough capacity to service all existing clients.
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OPPORTUNITIES |
They are within SMME Incubator hub yet not targeting clients
The existing clients are growing as well demanding more services
Agencies like SEDA offers opportunity |
THREATS |
Normal threats faced by all practices
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Summary
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Why is this a good business |
Monthly retainer clients with staff sponsored for training by FASSET, tied to subsidized rent in an Incubator hub. Membership of various agencies like SEDA and as a SAIPA ATC you would look very far to find something available on the market. |
Why is the owner selling it? |
Seller has a property venture on the go with other poartners and wants to focus on that instead
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