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 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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2004
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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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Local paper.
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Does the business have any contract work
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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. Very busy in beginning of the year
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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 R690,000 debtors book, R192,000 of that current. |
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How could the profitability of the business be improved?
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Grow the firm and increase productivity. |
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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 50% cash payment and subject to a proper handover and turnover warranty the balance over 12 months. A structured deal is therefore available to an APPROVED buyer. |
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4. Staffing
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What is the total staff complement?
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Six staff members are employed, this excludes the owner. This continuity of staff will also assist with the handover to you 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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To be discussed |
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Is there an option of renewal & what period
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Yes
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What is the annual escalation %?
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10% historically
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What are the trading hours?
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Office hours
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What is the square meterage of the business?
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Is a copy of the lease available?
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Yes
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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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Debtors
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What is their overall condition?
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Good
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Do any require repairing?
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No
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How have they been valued?
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Market Value
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Which assets are on lease/HP and with whom?
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None
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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
Good recurring Income
Staffed
Well established
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Weaknesses
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Keeping up with change
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Opportunities
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Expand services to clients
Growing area
Provide more Value Adds
Raise marketing profile of practice
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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 wants to relocate
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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. Flexible time and great location to be at the coast. Well establish firm with stable fees.
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