History and Overview Of The Business
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| Fully describe the business's activities |
This established practice supplies their clients with monthly bookkeeping service, payroll, accounting, tax and advisory services. The client base count 83 with 23 regular monthly accounting work clients. Monthly work makes up 69% of the income. This means strong monthly cash flow. This is something you would want as a SAIPA/SAIBA practitioner |
| When was the business established? |
2007 |
| How long has the owner had the business? |
The current owner started it |
How Does The Business Operate
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| How does the business operate on a daily basis |
Staff member does capturing, partners check the work, prepares Monthly Management Accounts and Audited Financial Statements |
| How are the clients attracted to the business? |
Word Of Mouth |
| What Advertising/Marketing is carried out? |
Word Of Mouth Only |
| Does the business have any contract work? |
No |
| What competition exists? |
Normal competition
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| Seasonal Trends? |
The business is busy throughout the year because of monthly clients. It is however busier around Tax Season as is normal |
Financial Information
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| Vat Registered? |
No, below threshold |
| Vat Documentation on File? |
Not registered |
| Management Accounts? |
Yes |
| Audited Financials? |
No, only management accounts. Annual Financial Statements. |
| Debtors Book Age Analisys |
Varies between R10,000 to R40,000 per month. Thus 30 days or less |
| How can you improve the profitability? |
Increase client base, or merge the client base into your existing operation |
| 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. |
Staffing Of the Business
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| What is the total number of Staff? |
2 owners and 1 contracted staff member working morning only, paid per hour. |
| Staff Breakdown |
2 owners, 1 contractor |
| Staff Special Perks and Bonuses? |
No |
| Are the staff on Contract? |
Yes |
| Does any of the staff have management potential? |
No |
| How involved is the Owner in running the business? |
Owners are hands on |
Premises Of the Business
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| When Does the Current Lease ends? |
Working from home so you have to move it |
| Is there an option to renew? |
No, owners moving as well |
| What is the annual escalation % |
None |
| Do You require a license? |
SAIPA/SAIBA and SAIT currently
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Assets Of The Business
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| Full Asset List available? |
No, you buying clients |
SWOT Of The Business
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| STRENGHTS |
Well Established for 10 years
Good monthly cash flow with client risk spread |
| WEAKNESSES |
Owner centric
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| OPPORTUNITIES |
There is more annual work to be done from some of the monthly clients
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| THREATS |
None identified
Client Retention is mitigated with Client Warranty
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Summary
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| Why is this a good business |
Good clients, Loyal Clients and a strong Cash flow. Terms to an approved buyer and to sweeten the pot a client warranty High demand for clients block ensure that you are buying an asset that is financed and warranted. You may however miss it if you blink. |
| Why is the owner selling it? |
Owners emigrating
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