History and Overview Of The Business
|
Fully describe the business's activities |
The practice is an accounting practice responsible for completing and submitting of statutory return, drafting of financial statements, payroll and other financial services. |
When was the business established? |
Since 1996 as sole proprietor and as CC since 1999 |
How long has the owner had the business? |
Started it |
How Does The Business Operate
|
How does the business operate on a daily basis |
Owner managed - provide mostly contracted services to clients |
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? |
Yes, mostly standard monthly VAT and payroll services to clients
|
What competition exists? |
Number of accounting firms in the area
|
Seasonal Trends? |
Every six months with submitting of statutory returns the practice is busier |
Financial Information
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Vat Registered? |
Yes |
Vat Documentation on File? |
As per VAT legislation |
Management Accounts? |
Yes |
Audited Financials? |
February 2017 |
What as Cash/Credit Split? |
20% cash, 80% credit |
Debtors Book Age Analisys |
30 Days
|
How can you improve the profitability? |
Rendering of additional services |
Is Seller Finance available and if so what is it? |
Yes, 50% on signing of contract and 50% repayable over 6 months |
Staffing Of the Business
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What is the total number of Staff? |
7 staff members |
Staff Breakdown |
3 Seniors, 2 SAIPA trainees, 2 input clerks
Processing of accounting and payroll information and submitting of statutory returns, drafting of financial statements. Between 2 and 15 years. |
Staff Special Perks and Bonuses? |
13th cheque if profits allow (since establishment always profitable) |
Are the staff on Contract? |
Yes, and 2 SAIPA trainees |
Does any of the staff have management potential? |
Yes, at least 1 |
How involved is the Owner in running the business? |
From day to day hands-on |
Premises Of the Business
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When Does the Current Lease ends? |
Seller owns the premises. The buyer will enter into a lease for the premises with first right of refusal to buy it from the seller. Initial period 3 years with option to extend will be available |
Is there an option to renew? |
As required |
What is the annual escalation % |
8% |
What are the Trading Hours? |
07h30 to 16h00 |
What is the square meters? |
+-180 |
Is a copy of the lease available? |
Yes, on file |
Do You require a license? |
SAIPA Accounting Practice
|
Assets Of The Business
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Full Asset List available? |
Yes, owner will provide |
Anything not included in the sale? |
No, everything is included |
What is condition of the assets |
Good, none needs repairing |
Any Assets on Lease/HP that Buyer needs to take over? |
Photostat machine is on lease from Xerox, buyer will take over |
Are they insured at the moment? |
Yes |
SWOT Of The Business
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STRENGHTS |
Large base of monthly clients requiring accounting services
Practice is well positioned
Established over a long period of time
Staff ensures continuity |
WEAKNESSES |
Business is stagnant because of owner ageing
|
OPPORTUNITIES |
Delivering of additional services
Extending services to historical disadvantaged communities
Extensive marketing opportunities |
THREATS |
None identified
|
Summary
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Why is this a good business |
Well established , well run, tremendous growth opportunities, very well positioned with well trained staff |
Why is the owner selling it? |
Owner is retiring
|