Business Overview
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1. History Background
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Fully describe the business's activities
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This firm has longstanding clients for the last 30 years, that are serviced by the seller and his staff. The staff performs the normal day to day tasks and the owner does the high end consulting work. 15% is ongoing monthly work.
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How long has the business been established?
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30 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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The owner oversees the operation. The staff does the work and the owner reviews it
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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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Word Of Mouth.
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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 are obviously busier. August for the 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, 2017
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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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60 to 90 days
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How could the profitability of the business be improved?
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Growing it with energetic owner.
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Is Seller finance available and for what amount?
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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 12 months.
The Sellerongoing involvement over the warranty period would need to be agreed upon with the buyer and clearly defined in the agreement.
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4. Staffing
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What is the total staff complement?
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9 staff members that exclude the owner and his wife.
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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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13th cheque
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Are they on contract?
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Yes
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How involved is the Owner of running the business
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The owner is hands-on
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5. Premises
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When does the current lease end?
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Seller owns the premises.
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Is there an option for renewal & what period
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You can get a lease from the seller.
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What is the annual escalation %?
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To be discussed
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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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300m2
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Is a copy of the lease available?
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To be discussed
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Do you require a licence?
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Yes, professional body, SAICA / IRBA
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6. Assets
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Is a full asset list on file?
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Yes, will be provided. You are buying the Clients & Going Concern.
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Are any items not included in the sale?
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Paintings and owners’ PC. To be discussed.
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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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Book Value
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Which assets are on lease/HP and with whom?
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N/A
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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, regular, distributed and diverse clients
Staffed with productive staff, high index on Benchmark Valuation
Established for 30 years
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Weaknesses
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None Perceived
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Opportunities
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Expand
Marketing and fresh approach to managing clients and staff.
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Threats
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None Perceived
If there is not a good fit with the clients by the new owner.
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8. Reason For Sale
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What is the reason for the sale?
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The owner is putting his exit strategy into operation
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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 seller's exit strategy, the staff members remaining, profitable. Audit clients in Johannesburg are in high demand, this is a very good opportunity. Be quick or miss it!.
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