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Accounting Practice In Southern Cape Town Area
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Business For Sale

Accounting Practice Overview


Accounting Practice For SaleThis is a practice with loyal clients and staff, with turnover having increased drastically since the current owner took the business over in 2 years ago.  Risk is low, especially with a well-planned exit strategy (The seller envisage not an outright sale of the practice, but a take‐over period of a full year, while the new owner gets to take it over gradually).


BUSINESS SELLING DETAILS

  Selling Price     3,300,000   Turn Over Per Month     240,582
  Stock Included   Profit Per Month 112,356
  Assets Included 0   R.O.I %  42%
  Total Price   3,300,000    



BUSINESS MANDATE INFORMATION
There is a bit of more work to complete during tax season.  Jan and February with annual year ends are obviously busier.  August for provisional tax is also busier
 History and Overview Of The Business
Fully describe the business's activities  This practice is well established and the owner suggest that it is sold whereby he earns a larger salary initially that reduces as the buyer takes all the duties over that is made up of normal Accounting & Tax Services.
When was the business established?  1998
How long has the owner had the business?  Since 2015
 How Does The Business Operate
How does the business operate on a daily basis  Staff do majority of the work with the owner reviewing the work
How are the clients attracted to the business?  Word of mouth, excellent location
What Advertising/Marketing is carried out? Word Of Mouth, advert in business directory of area
Does the business have any contract work?  Regular monthly clients forms the nucleus of this firm
What competition exists? Normal competition for the industry
Seasonal Trends?
 Financial Information
Vat Registered?  Yes
Vat Documentation on File?  Yes, current and available
Management Accounts?  Current management accounts available
Audited Financials?  N/A
What as Cash/Credit Split?  Credit, Terms of 30 days
Debtors Book Age Analisys  Mostly 60 days
How can you improve the profitability?  Improving efficiencies in the practice and growing it.
 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.  Please note the seller will not extend this option unless certain guarantees are in place.
   Staffing Of the Business
What is the total number of Staff?  4 staff members that exclude the owner.
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?  The owner is hands-on.
  Premises Of the Business
When Does the Current Lease ends?  Renegotiated lease for 3 years since 01/12/2017 with option to renew
Is there an option to renew?  Yes your choice
What is the annual escalation %  12%
What are the Trading Hours?

Office Hours,
Monday to Thursday 8h00 – 16h30,
Friday 8h00 – 13h00

What is the square meters?
Is a copy of the lease available?  Yes, on file
Do You require a license? Yes, you will have to be registered with a professional body like SAIBA/SAIPA/SAICA/SAIT/ACCA etc
 Assets Of The Business
Full Asset List available? Yes, will be provided
 Anything not included in the sale?  Personal items

 What is condition of the assets Good
 Any Assets on Lease/HP that Buyer needs to take over? N/A
 Are they insured at the moment? Yes
  SWOT Of The Business
 STRENGHTS Well Established more than 20 years
Loyal Clients
Good Staff
Visible location
 WEAKNESSES  None Perceived
 OPPORTUNITIES Expand Client Base
 THREATS  None Perceived
 Summary
Why is this a good business Client Retention with the seller's exit strategy, the staff members remaining, well established and well run practice with good staff and long standing loyal clients. Seldom will you have the opportunity to buy a practice here.
Why is the owner selling it?

The owner is emigrating and would prefer an approach whereby he is phased out. A 50% equity stake now with aplanned exit strategy would be preferable. An outright sale is of course also an option. This will however require a proper handover period if you want the client warranty



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Since 14 July 2018