Accounting Clients For Sale, Accounting Practice For Sale, Accounting Block Of Fees For Sale, Cape Town Practice For Sale, Xero Clients For Sale, SAICA Practice For Sale
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Cape Town Firm With Xero Clients For Sale
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Business For Sale

BUSINESS FOR SALE OVERVIEW


Accounting Practice For SaleThis firm has more than 120 stable regular clients. There are 80 clients on Xero. Operating in Cape Town, with between 10% and 15% growth annually over the last five years, it has now also increased profitability with the Xero strategy it is following.

The practice owner delegates work to a strong team. The seller will ensure a smooth handover and transition of the clients for and provide a 12-month warranty. The Seller is retiring from the industry, hence the sale.

BUSINESS SELLING DETAILS

  Asking Price 6,750,000 
  Fees Per Year 5,849,967 
  Cost Of Sale
  Gross Profit 5,849,967 
  Expenses 3,561,494 
  Profit Per Year** 2,320,355 
  R.O.I % 34.4% 
  **Profit = Seller Discretionary Earnings (SDE)


BUSINESS MANDATE INFORMATION
 History and Overview Of The Business
Fully describe the business's activities  Complete accounting solutions for Clients, including management accounts (frequency depending on Clients) and Annual Financial Statements (both where audit is or isn’t required), Payroll services (which is showing strong growth), Tax and resolving tax problems for Clients with SARS, Company Secretarial Services, Consultancy for business and tax advice. Strong Xero & Receipt Bank client base

Clients’ needs are analysed and agreed on an ongoing basis. Based on those decisions, they plan the Clients work so that all deadlines are achieved. This could entail Clients that are worked on daily, and other Clients where weekly/monthly work is done, across the full spectrum of services we supply, again, depending on the Client’s needs.
When was the business established? Since 1994
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 Owner-managed and run.
How are the clients attracted to the business? Referrals, Networking, Word of Mouth, Google and the Website
What Advertising/Marketing is carried out? LinkedIn, Google, Website, Monthly Newsletter, SAICA Newsletter, Word of Mouth and networking
Does the business have any contract work? Not as a rule, but longstanding client base. Their focus has always been towards long-term relationships, and accordingly, all clients have engagement letters, and the majority are longstanding.
What competition exists? Normal competition
Seasonal Trends? Busier in the Tax Season
EMP501 and COIDA Season
Annual Financial Statements: February/March, July to August
 Financial Information
Vat Registered? Yes
Management Accounts? It will be provided if needed.
Audited Financials? Income Statement indicating their income (by category) and the related costs to produce that income as you are buying that client base, not the legal entity.
What as Cash/Credit Split? All credit,– However, over the last two years, we have been encouraging clients to make monthly payments based on an annual estimated fee (final reconciliation takes place once the year is completed). Going forward, we believe this is the correct approach as it improves cash flows for both parties
Debtors Book Age Analysis Most clients pay on receipt of invoice, with a few being 30/60 days after receipt of invoice.
How can you improve the profitability? They improved the profitability of the business when they transferred to Xero, three years ago. They are now reaping the benefits of that investment, which has allowed them to further grow the business without adding overheads. In addition to the above, they are actively driving the marketing side.
 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 50% 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 over 12 months in monthly instalments.
(5) The terms and conditions regarding the warranty and ongoing involvement will be clearly defined, as well as how the price will be adjusted, either upwards or downwards at the end of the warranty period. The Seller will continue to bring new Clients to the business and will to be rewarded accordingly.
   Staffing Of the Business
What is the total number of Staff? 9 Employees
Staff Breakdown? Will be provided as part of the Due Diligence, but they are skilled and experienced staff, most with the business for a long time.
Staff Special Perks and Bonuses? No, other than a petrol and parking refunds and an annual bonus depending on productivity
Are the staff on Contract? Normal Employment Contract
How involved is the Owner in running the business? The owner delegates. However, always approachable when needed. Liaises with the clients regularly
  Premises Of the Business
When Does the Current Lease ends? 30th of April 2021.
Is there an option to renew? Yes, four year periods. Notice to be provided three months before for renewal or cancellation.
What is the annual escalation % 8.5%
What are the Trading Hours? 8am - 5pm
What is the square meters? 187 square metres
Is a copy of the lease available? Yes
Do You require a license? Yes, professional body, SAICA,/SAIPA/ACCA etc
 Assets Of The Business
Full Asset List available? Yes
 Anything not included in the sale? You are buying the Clients & Going Concern, thus the assets required to service those Clients.
 What is condition of the assets Excellent
 Any Assets on Lease/HP that Buyer needs to take over? 2 Printers,
Phone System,
Computers
 Are they insured at the moment? Yes – (insurance value is R 2,089,060.00)
  SWOT Of The Business
 STRENGTHS Loyal, regular, Well established, long term clients
Established for 26 years
A strong, loyal core team with many years of Client knowledge and service.
Xero Partners with a strong presence.
 WEAKNESSES Normal single partner aspect
 OPPORTUNITIES Expand the firm
Further potential to expand in Xero with associated App providers, which in turn will expand the firm
 THREATS None Perceived
 Summary
Why is this a good business Strong core well trained and loyal employees who are well qualified and educated in their fields. Many long-term loyal clients who trust them.
The business has been trading for 26 Years. Despite this long trading period, they remain current with new “industry tools”, which not only benefits their Clients but adds to staff skills and retention.
Why is the owner selling it? The owner has been in business for 45 years, including 26 years of being the owner of one. Therefore it is time to smell the Proteas amongst other adventures. Also, the Owner is concerned for the Clients, to ensure sustained, excellent, ongoing service it is time to retire from the industry.


Accounting Clients For Sale, Accounting Practice For Sale, Accounting Block Of Fees For Sale, Cape Town Practice For Sale, Xero Clients For Sale, SAICA Practice For Sale

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