1. History Background
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| Fully describe the business's activities |
The Practice provides comprehensive accounting services tailored to client needs, including preparation of annual financial statements, VAT submissions, and payroll processing. It handles all SARS tax matters, from compliance to dispute resolution, and offers expert consultancy and tax advisory services. With a strong focus on relationship-driven service, the firm supports clients through consistent engagement and advisory input. Operating with a lean yet skilled team, the Practice delivers dependable financial oversight and compliance for both individuals and small-to-medium enterprises. |
| How long has the business been established? |
Established 25 years ago on 1 June 2000. |
| How long has the owner had the business? |
Owner founded and still operates it. |
2. Present Market
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| How does the business operate daily? |
The Practice is owner-managed with a structured team responsible for daily operations. Staff handle routine tasks such as bookkeeping, VAT, payroll, and tax submissions, while the owner remains actively involved in client liaison and oversight. Workflow is managed through SAGE Accounting, ensuring efficient turnaround and minimal overhead. The team follows a task-driven schedule aligned with client deadlines and regulatory cycles. Client communication is prioritised, and the owner is accessible for consultations, ensuring high service continuity and quality delivery. |
| How are the clients attracted to the business? |
Clients are primarily acquired through word-of-mouth referrals, a testament to the firm's strong reputation and long-standing client relationships. Satisfied clients frequently recommend the Practice to peers, driving steady organic growth without reliance on paid marketing. This referral-based model has contributed to the firm’s loyal and stable client base. |
| What Advertising/Marketing is carried out? |
The business relies solely on word-of-mouth referrals, with no formal advertising or marketing campaigns currently undertaken. |
| Does the business have any contract work? |
While not bound by formal contracts, the Practice maintains long-standing relationships with recurring clients. These relationships, built on trust and reliability, effectively function as ongoing service agreements without formal documentation. |
| What competition exists |
Normal industry competition exists, but the Practice maintains a loyal client base due to its long-standing reputation and service quality. |
| What are the seasonal trends |
Peak activity occurs during Tax Season, COIDA submissions, EMP501 filings, and February/March for Annual Financial Statement preparation. |
3. Financial
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| Is the business VAT Registered |
Yes, the business is VAT registered and maintains all necessary documentation, available upon request during due diligence. |
| Are there up to date management accounts? |
Yes, the 2025 Annual Financial Statements are currently in process, and relevant management accounts will be made available. |
| What annual financials are available, income statement and or balance sheets? |
The 2025 Annual Financial Statements are currently being finalised; prior years’ income statements and balance sheets are available upon request. |
| What percentage of the business is cash/credit? |
The business operates entirely on credit, with all clients invoiced and payments typically made upon or shortly after receipt. |
| What is the age analysis of the debtor’s book? |
Most clients pay on receipt of invoice; a minority settle within 30 to 60 days post-invoicing. |
| How could the profitability of the business be improved? |
Profitability improved after transitioning to SAGE Accounting, reducing overheads. Further gains are possible through expanding services, enhancing automation, and scaling without increasing fixed costs.
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| Is Seller finance available and for what amount? |
Yes, seller financing will be considered under the following conditions:
- An approved buyer must be secured.
- The seller requires an upfront cash payment of 50% of the purchase price on the effective date.
- The Seller will guarantee turnover for 12 months, subject to mutually agreed terms and conditions, including the seller's continued involvement in the business.
- The remaining balance will be payable in monthly instalments over a 36-month period.
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.
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4. Staffing
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| What is the total staff complement? |
The Practice employs four skilled staff members in addition to the owner, all contributing to core accounting and support functions.
The Secretarial division has a further three staff members, in addition to the owner who is exiting in a six-month phased approach. |
| Staff Breakdown |
Team includes experienced personnel handling accounting, tax, payroll, and admin; one staff member has been with the firm for 15 years.
A specific list is available for the Due Diligence phase. |
| Do any receive special perks, bonuses or incentives? |
Employees receive a 13th cheque and a discretionary bonus during December, recognising their loyalty and contribution to the business. |
| Are they on contract? |
All employees are on standard employment contracts in compliance with South African labour laws and industry norms. |
| Do any have management potential? |
Yes, at least one staff member demonstrates strong leadership qualities and has the capability to take on managerial responsibilities. |
| How involved is the Owner in running the business? |
The owner delegates daily operations but remains actively engaged in client relations and oversight, ensuring continuity and service quality. |
5. Premises
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| When Does the Current Lease ends? |
There is no lease agreement in place as the property is owned by the seller, who operates the business from it.
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| Is there an option for renewal & what period |
Not applicable, as the premises are owner-owned. However, terms of occupancy can be negotiated if required post-sale. A lease of R35,000pm has been budgeted into the financials. Please note that there is also a generator on site, ensuring continuous uptime for the firm. |
| What is the annual escalation %? |
Approximately 8% annually will be negotiated. |
| What are the Trading Hours? |
Monday to Thursday: 08h00 to 16h30
Friday: 08h00 to 10h00, aligning with client needs and staff efficiency. |
| What is the square meterage of the business? |
Total area is 239 sqm. |
| Is a copy of the lease available? |
No lease; owner-occupied premises. One will be drafted with you.. |
| Do You require a license? |
Yes, the Practice operates under professional licenses with SAIPA and SAIT, ensuring compliance with industry standards and regulations. |
6. Assets
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| Is a full asset list on file? |
Yes, a complete asset list is available on request. |
| Are any items not included in the sale? |
Only client base and going concern are included. |
| What is their overall condition? |
All assets are in excellent working condition. |
| Do any require repairing? |
No repairs are currently required. |
| How have they been valued? |
Internally assessed based on utility and condition. |
| Which assets are on lease/HP and with whom |
Two printers and a phone system. |
| What are their settlement amounts? |
Details available during due diligence process. |
| Will the Seller settle or Buyer take over? |
Buyer to take them over, the expenses are in the calculated numbers provided. |
| Are copies of agreements available? |
Yes, copies available for review upon request. |
| Are they presently insured? |
Yes, all business assets are fully insured. |
7. S.W.O.T. Analysis
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| Strengths |
- Established for 25 years with consistent operations
- Loyal and long-standing client base
- Owner-founded with deep industry experience
- Skilled and stable staff team
- Strong client retention due to relationship-driven service
- Wide service offering including tax, payroll, VAT, and advisory
- Efficient operations using SAGE Accounting
- Minimal overheads and high SDE margin (43%)
- Trusted brand with word-of-mouth reputation
- Fully compliant with SAIPA and SAIT licensing
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| Weaknesses |
- Single partner structure with limited succession planning
- Limited formal marketing or advertising strategy
- No formal client contracts (relationship-based retention)
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| Opportunities |
- Expand service offerings, leveraging existing systems
- Further automate and scale using SAGE platform
- Potential to formalise client agreements and improve recurring revenue
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| Threats |
- Owner’s illness impacting transition if not well managed
- Client attrition risk if the handover is poorly executed
- Market pressure on fee-based valuations without warranties
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8. Reason For Sale
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| What is the reason for the sale? |
The sale of the Practice is prompted by the owner’s recent and serious health setback. As a result, the owner has decided to exit professional working life fully. This is a strategic and necessary transition to prioritise long-term personal well-being. The decision is not performance-related, and the Practice remains highly stable, profitable, and operationally sound with experienced staff in place to ensure continuity post-sale. |
9. Conclusion
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| Why is this a good business to buy? |
This is a highly reputable, well-established accounting firm with a loyal client base and strong recurring revenue. It offers stable profitability, experienced staff, and minimal operational risk. The use of SAGE Accounting enhances efficiency and scalability, while the seller is open to structured deal terms, including vendor finance. Located in a high-demand area, the firm is ideally suited for a buyer seeking a turnkey acquisition with strong client continuity and post-sale growth opportunities.
10 Reasons Why:
- 25-year track record
- Strong client loyalty
- High SDE margin
- Skilled, stable staff
- Owner support during transition
- Minimal overheads
- Efficient cloud systems (SAGE)
- Consistent fee base
- Vendor finance available
- Located in a sought-after region
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