History and Overview Of The Business
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Fully describe the business's activities |
Accounting and taxation services are provided for a monthly or annual fee to business clients. This a a well established practice with a 30 year track record. The staff under supervision of the owner provides the full accounting function.
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When was the business established? |
Since 1986 |
How long has the owner had the business? |
Since 2009 |
How Does The Business Operate
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How does the business operate on a daily basis |
The staff performs the tasks under close supervision of the owner. He spend about two weeks per month in the business in total hours. He is a seperate activity consulting with his previous employer and has been asked to return full time. |
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 the business have fixed monthly clients |
What competition exists? |
Normal
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Seasonal Trends? |
Normal, busier in tax season |
Financial Information
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Vat Registered? |
Yes |
Vat Documentation on File? |
Yes |
Management Accounts? |
12 months up to Feb 2016 |
Audited Financials? |
Feb 2016 |
What as Cash/Credit Split? |
About 10% of the business is cash or advance payment. The balance is credit
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Debtors Book Age Analysis |
Average is R210,000 per month |
How can you improve the profitability? |
Marketing and advertising. Actively seeking new clients |
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 after a 6 to 12 month period to an APPROVED buyer. |
Staffing Of the Business
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What is the total number of Staff? |
Currently 3 but generally operates with 2 staff if the owner is full time involved. A cleaner comes in twice a week. |
Staff Breakdown |
Data Capturer - Bank STatement Processing (1.5 years)
Junior Accoutant - Bank Statement to AFS (1.5 years)
Junior Accoutant - Bank Statement to AFS (3 months) |
Staff Special Perks and Bonuses? |
None |
Are the staff on Contract? |
Yes |
Does any of the staff have management potential? |
Yes |
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? |
Expired, month to month |
Is there an option to renew? |
N/A |
What is the annual escalation % |
10% |
What are the Trading Hours? |
Mon - Thu : 08:00 to 16:45
Fri : 08:00 to 15:30 |
What is the square meters? |
110m2 |
Is a copy of the lease available? |
Yes |
Do You require a license? |
SAICA Member. SAIT registered.
The work done is SAIPA/SAIBA work. |
Assets Of The Business
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Full Asset List available? |
Yes, owner will provide.
SOFTWARE Pastel |
Anything not included in the sale? |
Yes, the sound system and the owners laptop and printer is excluded |
What is condition of the assets |
Good, none needs repairing
Furniture is old but in good condition.
The Computer Equipment is less than 3 years old and in a good condition
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Any Assets on Lease/HP that Buyer needs to take over? |
Central Printer is rented from Kyocera
PABX is rented from Telkom |
Are they insured at the moment? |
Yes |
SWOT Of The Business
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STRENGHTS |
Long Standing Practice, established clients
Fixed monthly revenues exceeds the fixed monthly expenses
Good Staff
Good cashflows |
WEAKNESSES |
Some clients suffering from the economic climate
Owner not full time active in the practice growing it
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OPPORTUNITIES |
Grow the business with new clients
Capacity is not maximised thus growth opportunity
Fully active owner in the practice will help growth
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THREATS |
None perceived apart from potential clients loss secured by split payment and the client warranty
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Summary
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Why is this a good business |
Long standing Practice with long standing and established clients supported by good staff. |
Why is the owner selling it? |
Owner is offered his old corporate job back where he is consulting currently
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