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Accounting Practice With An Innovative Edge For Sale
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Business For Sale


BUSINESS FOR SALE OVERVIEW


Accounting Practice For SaleThis is an innovative accounting practice giving you the edge on your competition. With much lower processing cost and an inovative solution for the new millennium you have the advantage to grow the practice with significant margin.  Cape Town based with clients up in Gauteng as well this might be just what you need.  With some 180 clients on retainer you have a solid base to grow from.

 NB If the the FIXED Income does not grow at all the practice will still generate R8m in the next 12 months.

 


BUSINESS SELLING DETAILS

  Selling Price    7,250,000   Turn Over Per Month  639,847 
  WIP Included 200,000    Profit Per Month 154,113
  Assets Included  200,000   
  Total Price  7,250,000    



BUSINESS MANDATE INFORMATION
 History and Overview Of The Business
Fully describe the business's activities  Having started out as a traditional SME accounting practice and operating locally for 8 years, the business was transformed into an innovate accounting solution in 2012. This model ensure revenue growth of above 35% year on year from 2012 - 2015. Customers are classified into two groups, Core and Annual, and are differentiated based on whether or not bookkeeping services are included in the Package selected. All customers pay a monthly retainer/subscription whether Weekly or Annual Customers. Income is classified as Fixed and Variable with the objective of growing the Fixed Recurring Revenue base. Profitability is maximised through internal processing efficiency achieved by software and adherence to agreed customer processing procedure confirmed during on boarding. All customers undergo a Customer Orientation and Training session on signing their FPA.
When was the business established?  2004
How long has the owner had the business?  The current owner started the business in 2004, but converted it from a traditional Accounting Practice to the new leading edge 3 years ago.
 How Does The Business Operate
How does the business operate on a daily basis  The owner is not directly involved in any day-to-day bookkeeping, accounting and/or tax services.
How are the clients attracted to the business?  New customer enquiries are received on a weekly basis. The business with its trade marked name and innovative approach is growing fast
What Advertising/Marketing is carried out? As the leader in its field it does get very good exposure
Does the business have any contract work?  All customer pricing is done upfront with each Customer signing a Fixed Price Agreement (FPA). All FPA’s are payable by Debit Order at the end of each month. 90% of all revenue is collected by Debit Order.
What competition exists? Normal traditional competition, he business has offices in Cape Town and Johannesburg, with Customers located in Cape Town, Johannesburg and Durban
Seasonal Trends?  Tax season is busier in line with the industry and financial year ends
 Financial Information
Vat Registered?  Yes
Vat Documentation on File?  Yes, registered
Management Accounts?  Yes
Audited Financials? Yes
What as Cash/Credit Split?  90% of all revenue is collected by Debit Order.
Debtors Book Age Analisys  See above
How can you improve the profitability? Growth nationally can continue, especially because one of the arrangement gives them direct access to 15,000 new business owners per month.  Growth is what this practice is all about an a scalable base. 
 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 at 1% per month, 38% after 12 months to an APPROVED buyer. A structured deal will thus be considered. An arrangement around a stream of new clients could also be reached.
   Staffing Of the Business
What is the total number of Staff?  16 staff members
Staff Breakdown  1 Owner, not hands on, 8 SAIPA Trainees, 3 Full SAIPA Members, 1 SAIPA Technician, 3 Admin Staff
Staff Special Perks and Bonuses?  No
Are the staff on Contract?  Yes
Does any of the staff have management potential?  Yes. Managers in place
How involved is the Owner in running the business?  The owner is not directly involved in any day-to-day bookkeeping, accounting and/or tax services
  Premises Of the Business
When Does the Current Lease ends?  Office in Johannesburg and Cape Town
Is there an option to renew?  Yes
What is the annual escalation %  10%
What are the Trading Hours? Weekdays
What is the square meters?  Cape Town - 100m2 Johannesburg 80m2
Is a copy of the lease available?  Yes, on file
Do You require a license? The Business is registered with SAIPA, SAIT, SARS and with SAIPA as an ATC. The business name is a registered Trade Mark
 Assets Of The Business
Full Asset List available?  Yes, owner will provide
 Anything not included in the sale?  One personal vehicle if you purchase the legal entity
 What is condition of the assets  Good, none needs repairing
 Any Assets on Lease/HP that Buyer needs to take over?  Any HP/Lease will be settled
 Are they insured at the moment?  Yes
  SWOT Of The Business
 STRENGHTS Retainer income ensure stable cash flow income.
Innovative software increase productivity and income generation.
Various strategic partnership ensures growth of client base.
Leader in its field
 WEAKNESSES Getting more clients to adopt the new way initially. But this will be overcome fast as the global trend is accelerating towards this.
 OPPORTUNITIES At least 20 Customers, who receive ad hoc and related support services from the business, require an Annual Audit. Most have international interests, and the opportunity exists to offer Audit and high level advisory services.

This model could be franchised as well.
 THREATS  None perceived
 Summary
Why is this a good business Nice client base with solid income stream coming from an innovative culture and environment
Why is the owner selling it? The seller has a passion for the software and the environment, the culture it creates and the way in which it can transform the SME Accounting Industry in South Africa and would prefer to focus his time on these and related SME accounting practice tools, software training, integration and development activities for the South African market.


Business For Sale, Accounting Practice For Sale, Accounting Firm For Sale, Cape Town Business For Sale

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