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Established IRBA Firm in Johannesburg North For Sale
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Business For Sale

Auditing & Accounting Firm Overview

Accounting Practice For SaleThis established firm in Randburg is IRBA registered and supply the full suite of services to some 500 clients.  The owner is taking up a rule in corporate and as a result, this opportunity has become available.

This firm is well established with a 20-year track record and have a dynamic end highly skilled staff complement.  A good mix of services, 37% of the fees are IRBA work, and a good spread of clients, no single client makes up 10% of the fee base, nor does 20% of the clients represent 80% of the fees.  Coupled to this is the fact that a lot of the accounting fees are annuity-based and this is a low-risk firm.  The firm is mostly cloud-based making it a new generation firm and as a result have you set up for the future.

The sellers will ensure a smooth handover and transition of the clients and provide a 36-month warranty to mitigate the possible downturn as a result of Covid19 but also benefit from the upturn that will follow.  Couple the favourable deal terms and this makes it a fair transaction for all.



 Selling Price 11,000,000 
  Turn Over Per Year     11,405,826 
  Profit* Per Year 4,096,741
  R.O.I % 37.2%

Covid19 Valued and Deal Structured

 History and Overview Of The Business
Fully describe the business's activities  This firm established for 20 years services 500 clients over the whole spectrum from IRBA work to ongoing annuity based accounting work.  The owner delegates to the staff that is highly skilled, dynamic and representative of our society.  With a cloud-based approached this firm is geared for the future.
When was the business established?  Since 2000
How long has the owner had the business?  Seller started it
 How Does The Business Operate
How does the business operate on a daily basis  

The firm is a single partner operation.  The owner delegates to the staff.

How are the clients attracted to the business?  Word of mouth, referrals, reputation, website
What Advertising/Marketing is carried out?  No formal advertising is currently carried out. Website has been recently improved and Facebook page is regularly updated.
Does the business have any contract work?  No, but longstanding, regular clients.
A large portion of the accounting fees are annuity-based
What competition exists?  Normal competition.  
Seasonal Trends?  Busier in times where normal accounting and tax deadlines apply.  Consistent monthly work in progress.
 Financial Information
Vat Registered?  Yes
Vat Documentation on File?  Yes
Management Accounts?  It will be provided when needed.
Audited Financials?  All documentation will be available to an approved buyer during due diligence.   
What as Cash/Credit Split? 30% Current,  45% on 30days,
20% on 60 days and 5% on 90 days
Debtors Book Age Analisys 75% are 30 days or less
How can you improve the profitability?  Profitability can be improved by increasing the services offered and more sales.  
 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 expect an upfront cash payment, of 50% of the purchase price, on the Effective Date.

(3) The Seller will warrant turnover for 36 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 36 months.

(5)  The deal is Covid19 structured, with a downside/upside to make it fair

   Staffing Of the Business
What is the total number of Staff?  18 Staff
Staff Special Perks and Bonuses?  Will be discussed with approved buyers
Are the staff on Contract?  Normal employment contract
Does any of the staff have management potential?  Yes, there are currently 4 managers employed.
How involved is the Owner in running the business?  The owner is hands-on, but delegates to staff
  Premises Of the Business
When Does the Current Lease ends?  The building is owned by an entity which is related to the Seller. 
Is there an option to renew?  Yes.
 There is an option to purchase the building from the owner.
What is the annual escalation %  To be discussed
What are the Trading Hours?  Office hours, Monday – Thursday 8am-4:30pm , Friday 8am-2pm.
What is the square meters?  +/- 50 square meters
Is a copy of the lease available?  Yes
Do You require a license? IRBA Registration is required
 Assets Of The Business
Full Asset List available? Will be provided to an approved buyer as part of the Due Diligence
 Anything not included in the sale?  Owner’s Laptop

 What is condition of the assets  Excellent
 Any Assets on Lease/HP that Buyer needs to take over?  No
 Are they insured at the moment?  Yes
  SWOT Of The Business

Established Firm with dynamic and skilled staff

Profitable low-risk and good-paying debtors base.

Monthly cash flow constant due to annuity work.

  Profitable IRBA work in a sought after demographic
 WEAKNESSES   Single Partner firm
 OPPORTUNITIES   Plenty of growth potential.
 THREATS   None Perceived
Why is this a good business

The established and staffed firm has low-risk clients.  The annuity income provides steady monthly income and the IRBA work ensure good profitability.  Staff ensures continuity and handover without difficulty.  The firm is valued considering the impact of Covid-19 and the deal is structured to mitigate the risk and accommodate both buyer and seller during the downturn and resultant upswing that will follow.

Why is the owner selling it?  Owner is taking up a corporate position..

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