History and Overview Of The Business
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| Fully describe the business's activities |
They provide a variety of accounting and bookkeeping services including VAT, PAYE, UIF, Income tax, Provisional tax, EMP501 submissions.
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| When was the business established? |
Since 1995 |
| How long has the owner had the business? |
Since 2013 |
How Does The Business Operate
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| How does the business operate on a daily basis |
The majority of clients are on monthly retainers paid every two months when they submit their VAT. They do PAYE and VAT monthly.
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| How are the clients attracted to the business? |
Mainly reputation and word of mouth; |
| What Advertising/Marketing is carried out? |
They do some marketing on their website |
| Does the business have any contract work? |
Currently no contract work but most of the clients are on monthly retainers. As the clients have been with them for years it is difficult for them to leave. |
| What competition exists? |
Normal competition
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| Seasonal Trends? |
Income tax season is more time consuming as they have a variety of clients that they only do Income Tax returns for from July – Oct. Jan is a busy period as income tax is due for provisional tax payers
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Financial Information
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| Vat Registered? |
No |
| Vat Documentation on File? |
N/A |
| Management Accounts? |
Yes |
| Audited Financials? |
2018 - 2019 |
| What as Cash/Credit Split? |
Credit 95%
Cash 5% |
| Debtors Book Age Analisys |
R 3,000 (Over 4 Months)
R 16,100 (3 Months)
R 1,200 (Under 2 Months) |
| How can you improve the profitability? |
Increased billing on separate requests. i.e. Adding of employees on UIF or removals of employees which are not currently charged for
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| Is Seller Finance available and if so what is it? |
Yes, a structured deal will be considered on the following basis:-
(1) Finding an approved Buyer.
(2) The seller will accept an upfront cash payment of 60% 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 after 12 months.
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Staffing Of the Business
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| What is the total number of Staff? |
3 staff members |
| Staff Special Perks and Bonuses? |
Details of each staff member to be discussed with the buyer |
| Are the staff on Contract? |
No |
| Does any of the staff have management potential? |
Employment Agreements |
| How involved is the Owner in running the business? |
This is an owner-centric firm |
Premises Of the Business
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| When Does the Current Lease ends? |
Currently looking for new premises but can extend this lease for another 3 years if the new owner wishes. So you can relocate the firm |
| Is there an option to renew? |
Yes, lease for another 3 years if the new owner wishes. |
| What is the annual escalation % |
10% but over the last 3 years, the landlord has not applied any escalations. |
| What are the Trading Hours? |
Office Hours |
| What is the square meters? |
26m² |
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
Yes, professional body, SAICA/SAIPA/SAIBA/ACCA as example |
Assets Of The Business
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| Full Asset List available? |
Yes |
| Anything not included in the sale? |
Yes, the seller runs two businesses from one premise so any additional items will stay with seller
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| What is condition of the assets |
Fair condition |
| Any Assets on Lease/HP that Buyer needs to take over? |
N/A |
| Are they insured at the moment? |
No |
SWOT Of The Business
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| STRENGHTS |
Loyal, regular, well established, solid clients.
Established for 24 years.
Monthly Cash flow.
Word Of Mouth clients, so more stable
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| WEAKNESSES |
Normal single partner aspect
The Staff could be trained some more to be more autonomous
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| OPPORTUNITIES |
Expand the firm
Start Out with these clients
Boost your existing Fee Block
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| THREATS |
None Perceived
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Summary
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| Why is this a good business |
“Clients have been loyal for years, Most clients pay on time. Business running for over 20 years” – The Seller
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| Why is the owner selling it? |
The seller is emigrating
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