History and Overview Of The Business
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| Fully describe the business's activities |
This firm provides the full accounting and bookkeeping services to small and medium-sized businesses that mostly comprise of Financial statement compilation, VAT calculations, PAYE & payroll functionality, UIF, Income tax, Provisional tax as well as secretarial services. |
| When was the business established? |
Since 2016 |
| How long has the owner had the business? |
Seller started it |
How Does The Business Operate
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| How does the business operate on a daily basis |
The firm is a single practitioner operation. The seller works from home, using Sage One and Pastel Payroll. Reports are emailed to the clients. Clients in Gauteng are seën once a month. Dolphin Coast-based client is seen every 3 months. |
| How are the clients attracted to the business? |
Word of mouth and referrals. |
| What Advertising/Marketing is carried out? |
No advertising is currently carried out. |
| Does the business have any contract work? |
The monthly retainer is received every month. Other services are charged when it is due to be done. |
| What competition exists? |
Normal competition |
| Seasonal Trends? |
Busier in times where normal accounting and tax deadlines apply. |
Financial Information
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| Vat Registered? |
No |
| Management Accounts? |
It will be provided if needed. |
| Audited Financials? |
All documentation will be available to an approved buyer during due diligence. |
| What as Cash/Credit Split? |
100% credit as clients pay after the work is completed and the invoices were sent out. Most clients pay with 15 – 30 days of receiving their invoices |
| Debtors Book Age Analysis |
Most are current |
| How can you improve the profitability? |
Profitability can be improved by increasing the number of retainer clients as well as completing ad hoc work for individuals or companies. |
| 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 expect 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 after 12 months. |
Staffing Of the Business
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What is the total number of Staff?
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No Staff |
| Staff Special Perks and Bonuses? |
Owner is the only staff member from the inception of the business. |
| Are the staff on Contract? |
N/A |
| Does any of the staff have management potential? |
N/A |
| How involved is the Owner in running the business? |
The owner is hands-on. |
Premises Of the Business
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| When Does the Current Lease ends? |
Home Office |
| Is there an option to renew? |
N/A |
| What is the annual escalation % |
N/A |
| What are the Trading Hours? |
Office Hours |
| What is the square meters? |
N/A |
| Is a copy of the lease available? |
N/A |
| Do You require a license? |
Tax Practitioner registration is required as well as registration with a board such as SAIBA/SAIPA/SAICA etc |
Assets Of The Business
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| Full Asset List available? |
This is the purchase of clients, a block of fees. No Assets |
| Anything not included in the sale? |
N/A
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| What is condition of the assets |
N/A |
| Any Assets on Lease/HP that Buyer needs to take over? |
N/A |
| Are they insured at the moment? |
N/A |
SWOT Of The Business
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| STRENGTHS |
Established and Profitable clients
Loyal Clients due to the personal level of service they have received.
Great paying clients.
Monthly cash flow constant due to established retainers. |
| WEAKNESSES |
Currently, no other staff to assist in busy times as the owner does everything.
Relatively small client base.
|
| OPPORTUNITIES |
Plenty of growth potential through referrals and word of mouth as the clients are currently very happy with the service provided. |
| THREATS |
None Perceived
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Summary
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| Why is this a good business |
The firm has established loyal clients.
This provides an easy, steady monthly income and can be handed over without difficulty.
The clients are service clients, in one instance 3 clients are based in the same offices |
| Why is the owner selling it? |
Owner is emigrating
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