Accounting Practice For Sale,Accounting Clients For Sale,Accounting Firm For Sale,SAIPA Practice For Sale, Business For Sale
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Retainer Based Fast Growing Accounting Practice
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Business For Sale


BUSINESS FOR SALE OVERVIEW


Accounting Practice For SaleThis is not you average accounting practice.  A dynamic model, fast growing with excellent debit order based monthly income from 63 clients.  Additional audit work of R1.5m per year is also yours, but NOT included in the profit and loss calculation.


BUSINESS SELLING DETAILS

  Selling Price    7,500,000   Turn Over Per Month     458,333 
  Debtors Included 1,300,000    Profit Per Month 183,333
  Assets Included  500,000   R.O.I %  29%
  Total Price   7,500,000    



BUSINESS MANDATE INFORMATION
Yes, will be provided as part of DD.  The current financials includes other income from other entities and operations of the group not forming part of what are been sold.  Up to Feb 2016 available Low risk with spread of clients
Debit Orders ensure minimal payment demands on client
Debit Orders ensure strong cashflow
Geographical spread of clients
 History and Overview Of The Business
Fully describe the business's activities  This firm is an SAIPA ATC and has an office in Pretoria and one in Mpumalanga.  Sel suffiencient and motivates staff need minimal owner management and operates the practice with 60 plus retainer clients on monthly debit order, ensuring strong cashflows.  More clients complete the billing and they also perform through another entity audts and reviews creating an additional R1.5m revenue that can be your if you are and audit firm.  They have a unique business model to ensure growth and is not an owner centric practice.  But miss this one 
When was the business established?  2011
How long has the owner had the business?  The current owner started the business in 2011
 How Does The Business Operate
How does the business operate on a daily basis  The business is run by skilled staff,  with owner oversight
How are the clients attracted to the business?  Word Of mouth.  
The staff also have incentives in placeto secure debit order clients and retain them
What Advertising/Marketing is carried out? SEO on the internet
Staff incentivized scheme 
Does the business have any contract work? 63 Debit Order Clients paying monthly, total R3.8m per year
The smaller debit order is R3420, the sweet spot and median is R6,000 per month and the largest is R24,000 per month.  That largest client the provides a further R100,000 in audit work.  So the largest client represents 7.5% of the risk
What competition exists? Normal industry competition
Seasonal Trends? Normal, but the normalised monthly Debit Orders smooths out the cashflow
 Financial Information
Vat Registered?  Yes
Vat Documentation on File?  All required and available during DD
Management Accounts?  Yes, will be provided as part of DD.  The current financials includes other income from other entities and operations of the group not forming part of what are been sold
Audited Financi
What as Cash/Credit Split? All Credit, but R3.8m of R5.5m per annum comes from Debit Orders monthly, the debits including curren is R1.3m, so R800,000 is on 30 days
Debtors Book Age Analisys  30 days for R800,000, R500,000 is current
How can you improve the profitability?  Expand the clients base, retain the audit work
 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.  A structured deal will thus be considered.  There is also the option to buy a smaller stake initially.  R2.5m for 25%, R3.75m for 50% (In both these cases no warranty will be provided as the seller will remain as partner)
   Staffing Of the Business
What is the total number of Staff?  6 in Pretoria Office
4 in Mpumalanga Office
Staff Breakdown  Will be provided in the Due Diligence
Staff Special Perks and Bonuses? Yes, staff gets a 14th cheque tied to a group team target.  The staff also get the second month of any Debit Order and thereafter annually on the anniversary that debit order payment for any client they sign up on the debit order system.
Are the staff onYes
Does any of the staff have management potential?  Yes. Managers in place
How involved is the Owner in running the business?  Owner is hands on but only with important work as when required and then overseeing the business.  Note the seller has various other business interests, both locally and abroads
  Premises Of the Business
When Does the Current Lease ends? The leases are still in place and can be renewed
Is there an option to renew?  Yes
What is the annual escalation %  TBC
What are the Trading Hours? Office Hours
What is the square meters?  
Is a copy of the lease available?  Yes, on file
Do You require a license? SAIPA registered
 Assets Of The Business
Full Asset List available?  Yes, owner will provide
 Anything not included in the sale?  No, everything is included
 What is condition of the assets  Good, none needs repairing
 Any Assets on Lease/HP that Buyer needs to take over?  No
 Are they insured at the moment?  Yes
  SWOT Of The Business
 STRENGHTS
 WEAKNESSES  Owner cannot give it personal attention

 OPPORTUNITIES Also do the audit work
Buy a significant stake but keep the seller skill and other related businesses as well to feed more business and utilize for your existing business/clients (Offshore Structures etc).
 THREATS  None identified
 Summary
Why is this a good business Practices of this nature does not always come onto the market and as such this is a great opportuity.  The fact that clients are on retainer is hugely beneficial.
Why is the owner selling it? The seller has various other business interests, some in the financial sector, other not.  Some local and some abroad.  He needs more free time, capital and focus for those.  He is however willing to sell only a portion of the practice although selling all is his first price.


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