Business Overview
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1. History Background
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Fully describe the business's activities
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This practice is made up of normal Accounting & Tax Services. The owner is hands on with the marketing and consulting but the four staff members do the bulk of the work. The practice has a solid monthly client base,
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How long has the business been established?
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2011 but some clients has been with the firm for 20 years
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How long has the owner had the business?
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Seller started it
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2. Present Market
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How does the business operate on a daily basis
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Owner operated.
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How are the clients attracted to the business
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Word of mouth
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What Advertising/Marketing is carried out
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No advertising.
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Does the business have any contract work
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+/- 60 regular monthly clients
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What competition exists
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Normal competition for the industry
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What are the seasonal trends
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There is a bit of more work to complete during tax season. Jan and February with annual year ends is obviously busier. August for provisional tax is also busier
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3. Financial
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Is the business VAT Registered
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Yes.
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Are there up to date management accounts?
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Yes, current and available.
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What annual financials are available, income statement and or balance sheets?
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Yes, 2018
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What percentage of the business is cash/credit?
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Terms of 30 days
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What is the age analysis of the debtor’s book?
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30 – 60 days – about R420,000 debtors book
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How could the profitability of the business be improved?
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More clients should be added and the service offering can be expanded.
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Is Seller finance available and for what amount?
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Yes, in line with selling accounting practices the seller will accept a 60% cash payment and subject to a proper hand over and turnover warranty the balance over a 12 month period to an APPROVED buyer. A structured deal will thus be considered. Please note the seller is emigrating and a fast handover will take place.
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4. Staffing
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What is the total staff complement?
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4 staff members that excludes the owner. Thus 4 to be taken over. This will also assist with continuity and be a condition of a warranty.
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Staff Breakdown
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Will be discussed with buyers.
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Do any receive special perks, bonuses or incentives?
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No
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Are they on contract?
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Yes
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How involved is the Owner in running the business
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Owner is hands-on
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5. Premises
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When does the current lease end?
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Operated from the sellers house
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Is there an option of renewal & what period
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N/A
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What is the annual escalation %?
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N/A
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What are the trading hours?
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N/A
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What is the square meterage of the business?
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100m2
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Is a copy of the lease available?
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N/A
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Do you require a licence?
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Yes, professional body, example SAIBA/SAIPA/SAICA
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6. Assets
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Is a full asset list on file?
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Some office furniture
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Are any items not included in the sale?
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Coffee Machine
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What is their overall condition?
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N/A
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Do any require repairing?
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N/A
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How have they been valued?
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N/A
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Which assets are on lease/HP and with whom?
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Printer is on a month to month rental and may be cancelled
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What are their settlement amounts?
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N/A
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Will Seller settle or Buyer to take over?
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N/A
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Are copies of agreements available?
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N/A
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Are they presently insured?
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Yes
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7. S.W.O.T. Analysis
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Strengths
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Loyal client base
Consistent Clients
60 regular client base
Staffed
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Weaknesses
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None perceived
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Opportunities
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Expand services to clients
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Threats
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None Perceived
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8. Reason For Sale
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What is the reason for the sale?
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Owner leaving industry
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9. Conclusion
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Why is this a good business to buy?
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Client Retention with the remaining staff members, strong monthly income and Cashflow is always a big plus. Pretoria East practices don’t come to market often
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