History and Overview Of The Business
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| Fully describe the business's activities |
This firm established for 20 years services 500 clients over the whole spectrum from IRBA work to ongoing annuity based accounting work. The owner delegates to the staff that is highly skilled, dynamic and representative of our society. With a cloud-based approached this firm is geared for the future. |
| When was the business established? |
Since 2000 |
| 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 partner operation. The owner delegates to the staff.
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| How are the clients attracted to the business? |
Word of mouth, referrals, reputation, website |
| What Advertising/Marketing is carried out? |
No formal advertising is currently carried out. Website has been recently improved and Facebook page is regularly updated. |
| Does the business have any contract work? |
No, but longstanding, regular clients.
A large portion of the accounting fees are annuity-based
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| What competition exists? |
Normal competition. |
| Seasonal Trends? |
Busier in times where normal accounting and tax deadlines apply. Consistent monthly work in progress. |
Financial Information
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| Vat Registered? |
Yes |
| Vat Documentation on File? |
Yes |
| Management Accounts? |
It will be provided when needed. |
| Audited Financials? |
All documentation will be available to an approved buyer during due diligence. |
| What as Cash/Credit Split? |
30% Current, 45% on 30days,
20% on 60 days and 5% on 90 days |
| Debtors Book Age Analisys |
75% are 30 days or less
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| How can you improve the profitability? |
Profitability can be improved by increasing the services offered and more sales. |
| 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 36 months, subject to acceptable terms and conditions being established for the owner’s continued involvement in the business.
(4) The balance is payable in monthly payments over 36 months.
(5) The deal is Covid19 structured, with a downside/upside to make it fair
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Staffing Of the Business
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| What is the total number of Staff? |
18 Staff |
| Staff Special Perks and Bonuses? |
Will be discussed with approved buyers |
| Are the staff on Contract? |
Normal employment contract |
| Does any of the staff have management potential? |
Yes, there are currently 4 managers employed. |
| How involved is the Owner in running the business? |
The owner is hands-on, but delegates to staff |
Premises Of the Business
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| When Does the Current Lease ends? |
The building is owned by an entity which is related to the Seller. |
| Is there an option to renew? |
Yes.
There is an option to purchase the building from the owner. |
| What is the annual escalation % |
To be discussed |
| What are the Trading Hours? |
Office hours, Monday – Thursday 8am-4:30pm , Friday 8am-2pm. |
| What is the square meters? |
+/- 50 square meters |
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
IRBA Registration is required |
Assets Of The Business
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| Full Asset List available? |
Will be provided to an approved buyer as part of the Due Diligence
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| Anything not included in the sale? |
Owner’s Laptop
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| What is condition of the assets |
Excellent |
| Any Assets on Lease/HP that Buyer needs to take over? |
No |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Established Firm with dynamic and skilled staff
Profitable low-risk and good-paying debtors base.
Monthly cash flow constant due to annuity work.
Profitable IRBA work in a sought after demographic |
| WEAKNESSES |
Single Partner firm
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| OPPORTUNITIES |
Plenty of growth potential. |
| THREATS |
None Perceived
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Summary
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| Why is this a good business |
The established and staffed firm has low-risk clients. The annuity income provides steady monthly income and the IRBA work ensure good profitability. Staff ensures continuity and handover without difficulty. The firm is valued considering the impact of Covid-19 and the deal is structured to mitigate the risk and accommodate both buyer and seller during the downturn and resultant upswing that will follow.
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| Why is the owner selling it? |
Owner is taking up a corporate position..
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