1. History Background
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| Fully describe the business's activities |
Minute taking, scribe, rapporteur, verbatim transaction and board support services in various industries. The minuting of Board, Audit, RemCo and ExCo meetings as well as AGM’s, operational meetings, disciplinary hearings and workshops. Minute takers attend meetings where required or produce minutes from recordings.
The business offering is based on relieving the clients of the time-consuming and onerous task of drafting minutes of all meetings by providing a professional service. An added benefit of using the outsourced service is that sensitive information is kept confidential and the potential to leak information is limited.
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| How long has the business been established? |
Since the early 1990’s. |
| How long has the owner had the business? |
The owner started the business. |
2. Present Market
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| How does the business operate daily? |
The business is owner-run with a staff of 20 professional and highly skilled minute takers who are highly proficient and have an excellent grasp of English with a good understanding of business. Minute takers work remotely or on site and are spread around the country.
The owner and three staff members are in office and handle the calendar (who attends which meetings/writes which minutes) taking into consideration client preferences as well as each minute takers’ particular skill-set and industry exposure.
A team of editors quality assures all minutes and the owner addresses and deals with any issues that arise. The owner’s spouse assists in the business but is not required for the running of the business.
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| How are the clients attracted to the business? |
Referrals, Networking, Word of Mouth, and the Website. |
| What Advertising/Marketing is carried out? |
Predominantly word of mouth, Google ads and the website. Adverts are occasionally placed in strategic publications such as CGISA Boardroom magazine. |
| Does the business have any contract work? |
The major client has recently signed a two year contract and various other quotes are out. The rest of the clients are on an “as and when required” basis. MoUs are signed with all clients. The MoUs are continuous until cancelled. |
| What competition exists |
The business has approximately four competitors, however, it is the largest player in this space. |
| What are the seasonal trends |
Quarter and half / full-year ends. These falls mainly in February, May, August and November. |
3. Financial
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| Is the business VAT Registered |
Business is VAT registered, All VAT returns are up to date. |
| Are there up to date management accounts? |
Yes, up to January 2023. |
| What annual financials are available, income statement and or balance sheets? |
2018 through 2022. |
| What percentage of the business is cash/credit? |
All payments are EFT. |
| What is the age analysis of the debtor’s book? |
Clients are mainly up to date with very few (90 days plus) long outstanding clients. |
| How could the profitability of the business be improved? |
By extending services offered and/or by growing clientele and minute-taker pool. |
| Is Seller finance available and for what amount? |
Yes, a structured deal will be considered on the following basis:-
- Finding an approved Buyer.
- The seller will expect an upfront cash payment, of 50% of the purchase price, on the Effective Date.
- 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.
- The balance is payable in monthly payments over 24 months.
- 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? |
Twenty minute takers
Three in office staff and the owner
Four editors/proof readers/QA |
| Staff Breakdown |
Will be provided as part of the Due Diligence. |
| Do any receive special perks, bonuses or incentives? |
13th cheque. Often work from home. Flexible working hours. |
| Are they on contract? |
The office staff are employed (two half day and one full day).
Minute takers are given work depending on their availability. They are paid using the same formula as invoicing of clients and only on completion of work. Nondisclosure agreements are signed by all minute takers and editors.
Editors are given work depending on availability and paid per page for work completed.
Only office staff are on set monthly salaries |
| Do any have management potential? |
Yes, owner will discuss when appropriate with buyers. |
| How involved is the Owner in running the business? |
The owner runs the business. |
5. Premises
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| When Does the Current Lease ends? |
Month to month basis |
| Is there an option for renewal & what period |
Yes |
| What is the annual escalation %? |
CPI |
| What are the Trading Hours? |
Office hours are 08:00 to 16:00
Minute takers manage their own time |
| What is the square meterage of the business? |
Approximately 100m². |
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
No |
6. Assets
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| Is a full asset list on file? |
Yes |
| Are any items not included in the sale? |
Owners personal laptops and cellphones.
Minute taking training and training material. |
| What is their overall condition? |
All in excellent condition. |
| Do any require repairing? |
No |
| How have they been valued? |
Recently purchased |
| 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
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| Strengths |
Well established with an excellent reputation in the marketplace.
A large, diverse client base, many of whom were acquired by word of mouth.
Minute takers are paid for work done using the same formula as invoicing of clients.
One of the few service providers in the market that focuses solely on minute taking.
Minute takers are highly skilled and can minute technical meetings correctly.
Very low overheads.
The business has gone from strength to strength even doubling in size some years and, while they did take a knock during Covid, and then with the major client, this
has rebounded strongly as can be seen in the figures and the major client is back now on contract.
Very low bad debt ratio / late payment.
Good corporate clients. |
| Weaknesses |
Availability of suitably qualified minute takers as it can be a struggle to find resources.
Constant monitoring and intervention where necessary is required to maintain high standards.
The nature of the business is such that clients can choose if and when to use the services. Clients sometimes use the service on an ad hoc basis, creating an overload of work at times.
Not BEE compliant. |
| Opportunities |
Extending service offerings.
Extending regional / global reach given the use of Teams/Zoom.
If BEE compliant, government business could be won. |
| Threats |
Previously one client account for the bulk of the business, however this has been addressed and while they are still a major portion of the business, they are a smaller percentage around 30% but then also tied in on contract |
8. Reason For Sale
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| What is the reason for the sale? |
The owner wishes to retire. |
9. Conclusion
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| Why is this a good business to buy? |
Well established and largest player in this market with an excellent reputation in the market.. |