Partner In BEE Accounting Firm Wanted
49% Partner In BEE Accounting Firm Wanted
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Business For Sale

49% Partner In BEE Accounting Firm Wanted

Accounting Practice For SaleA firm with an impressive clientele and a great business model outsourcing many of the accounting functions for their clients has made its mark in the industry.  The partner is emigrating and needs an equally innovative BEE partner to fill the position.  This will be best suited for someone that has both corporate and entrepreneurial skills and experience.  If you are a BEE female candidate you would be perfect for this.  The perfect match would be even better if the incoming partner already has fees to cover their expenses.  You then buy into the firm with cash and merge the two entities to create an even better firm going forward.

This firm will have the opportunity after this not to only serve local clients but with the existing partner based offshore to start doing offshore work locally, creating unlimited opportunity.

The company provides bookkeeping, payroll, tax and advisory services. The company assist clients in designing and implementing cloud-based ERP and accounting systems.  You therefore shouldn’t just be an accountant, but a consultant to transform businesses with the latest innovations.

A new era awaits you as part of this innovative business and this creates an opportunity for someone to carry the torch locally.  Is that you?

       ASKING PRICE 49%            4,500,000        
       Fees Pa Warranted              10,510,000        
       Expenses Pa        8,014,000        
       Profit For Year* 49% 2,496,000        

*Profit = Seller Discretionary Earnings

Business Overview

 1. History Background
Fully describe the business's activities  The company provides bookkeeping, payroll, tax and advisory services. The company assist clients in designing and implementing cloud-based ERP and accounting systems.  You therefore shouldn’t just be an accountant, but a consultant to transform businesses with the latest innovations.
How long has the business been established? The business was established in 2018, so you can see fantastic growth.
How long has the owner had the business? Since the start, in 2018.
 2. Present Market
How does the business operate daily? The staff members complete tasks required to service clients concerning the scope of work.  The required review is done by the managers and communicated to the clients.  Limited involvement by the owner on delivery except when more strategic advice and info are required.
How are the clients attracted to the business? Referrals, marketing (LinkedIn and Google), Networking.
What Advertising/Marketing is carried out? LinkedIn and Google 
Does the business have any contract work? Yes, system implementation is contract-based, however, the majority of clients are on monthly retainers governed by engagement letters.
What competition exists Normal competition.
What are the seasonal trends AFS and Income Tax returns based on the statutory deadlines
 3. Financial
Is the business VAT Registered Yes
Are there up to date management accounts? Yes, management accounts are available upon request.
What annual financials are available, income statement and or balance sheets? Yes, available on request
What percentage of the business is cash/credit? All clients are generally on credit
Payment behaviour of the debtors are to be verified during Due Diligence
What is the age analysis of the debtor’s book? Currently 45 days
How could the profitability of the business be improved? Increase in the book of business on the platform of the current cost.
Is Seller finance available and for what amount? 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 in monthly payments over 48 months.
  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.
  6. The seller will continue to bring new clients to the business and will be rewarded accordingly.
 4. Staffing
What is the total staff complement? The team complement is 12.
Staff Breakdown A breakdown will be provided as part of the Due Diligence process for interested parties.

10 Client Delivery
2 Sales, HR and Admin
Do any receive special perks, bonuses or incentives? Employee wellness benefits, 5 days study leave
Are they on contract? Yes
Do any have management potential? Yes
How involved is the Owner in running the business? The business is owner-managed. Delivery is delegated however if strategic in nature Owner is involved, and Sales are done mainly by the owner. This will become the role of the Purchaser.

The Owner will relocate overseas and perform Sales there and support remotely and bring in offshoring fees.
 5. Premises
When Does the Current Lease ends? Dec 2024
Is there an option for renewal & what period Yes
What is the annual escalation %? 9%
What are the Trading Hours? 8am to 4pm 
What is the square meterage of the business? +- 210 square meters 
Is a copy of the lease available? Yes
Do You require a license? Yes appropriate accounting body, SAICA/SAIPA
 6. Assets
Is a full asset list on file? Yes, Available on request
Are any items not included in the sale? No.
What is their overall condition? Good
Do any require repairing? No
How have they been valued? Book Value
Which assets are on lease/HP and with whom None
What are their settlement amounts? N/A
Will the Seller settle or Buyer take over? N/A
Are copies of agreements available? N/A
Are they presently insured? Yes insured
 7. S.W.O.T. Analysis
Strengths Established Clients.
Well Known Brand, with Trade Mark pending.
Cloud System partner – Xero, Dear, ApprovalMax.
Strong BEE Standing.
Strong BEE Team with a good reputation
 Weaknesses Single Partner
 Opportunities Growth of the firm locally with strong BEE
Streamline the delivery process of work
Offshoring growth opportunity
 Threats None
8. Reason For Sale
What is the reason for the sale? Owner emigrating 
9. Conclusion
Why is this a good business to buy? This firm with BEE credentials is established with a partner that has strong sales skills that can unlock offshoring revenue flow.  Remaining as a partner you have a smooth handover as a benefit and still access to the skill set.

Accounting Clients For Sale, Accounting Practice For Sale, Accounting Block Of Fees For Sale

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