Business Overview
|
|
1. History Background
|
|
Fully describe the business's activities
|
This practice is made up of normal Accounting & Tax Services. The owner is hands on with the marketing and consulting but the staff members do the bulk of the work. The practice has a spread out client base.
|
|
How long has the business been established?
|
2004
|
|
How long has the owner had the business?
|
Seller started it
|
2. Present Market
|
|
How does the business operate on a daily basis
|
Owner operated.
|
|
How are the clients attracted to the business
|
Word of mouth
|
|
What Advertising/Marketing is carried out
|
None.
|
|
Does the business have any contract work
|
Regular monthly clients
|
|
What competition exists
|
Normal competition for the industry
|
|
What are the seasonal trends
|
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. Very busy in beginning of the year
|
3. Financial
|
|
Is the business VAT Registered
|
Yes.
|
|
Are there up to date management accounts?
|
Yes, current and available.
|
|
What annual financials are available, income statement and or balance sheets?
|
Yes, 2018
|
|
What percentage of the business is cash/credit?
|
Terms of 30 days, Mostly buy Month En
|
|
What is the age analysis of the debtor’s book?
|
45% Current, 38% 30 days, 6% 90 days
|
|
How could the profitability of the business be improved?
|
More clients should be added, fees could be increased, lower that others in town at moment
|
|
Is Seller finance available and for what amount?
|
Yes, in line with selling accounting practices the seller will accept a 50% 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.
|
4. Staffing
|
|
What is the total staff complement?
|
3 staff members that exclude the owner. This will also assist with continuity and be a condition of a warranty.
|
|
Staff Breakdown
|
Will be discussed with buyers.
|
|
Do any receive special perks, bonuses or incentives?
|
No
|
|
Are they on contract?
|
Yes
|
|
How involved is the Owner in running the business
|
Owner is hands-on
|
|
5. Premises
|
|
When does the current lease end?
|
None, owner runs from his home
|
|
Is there an option of renewal & what period
|
Yes, you can rent ongoing from the owner that is keeping property, although he is emigrating
|
|
What is the annual escalation %?
|
N/A
|
|
What are the trading hours?
|
Office hours, but close for lunch time J
|
|
What is the square meterage of the business?
|
+/- 50m2
|
|
Is a copy of the lease available?
|
N/A
|
|
Do you require a licence?
|
Yes, professional body, example SAIBA/SAIPA/SAICA
|
6. Assets
|
|
Is a full asset list on file?
|
Some office furniture
|
|
Are any items not included in the sale?
|
Debtors
|
|
What is their overall condition?
|
Good
|
|
Do any require repairing?
|
No
|
|
How have they been valued?
|
Market Value
|
|
Which assets are on lease/HP and with whom?
|
Switchboard & Printer on rental
|
|
What are their settlement amounts?
|
N/A
|
|
Will Seller settle or Buyer to take over?
|
N/A
|
|
Are copies of agreements available?
|
N/A
|
|
Are they presently insured?
|
Yes
|
|
7. S.W.O.T. Analysis
|
|
Strengths
|
Loyal client base
Staffed
Well established
|
|
Weaknesses
|
Fees needs to increase gradually
|
|
Opportunities
|
Expand services to clients
Local country stile living, or branch for youy
|
|
Threats
|
None Perceived
|
8. Reason For Sale
|
|
What is the reason for the sale?
|
Owner emigrating
|
9. Conclusion
|
|
Why is this a good business to buy?
|
Client Retention with the remaining staff members growth opportunity as service levels of competition in the area aren’t to good. Nice entry size.
|