History and Overview Of The Business
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| Fully describe the business's activities |
This IRBA registered auditing firm is also a SAICA ATC. They supply a range of service including deceased estates, HOA work and traditional monthly clients. In addition they also offer Audit and Assurance, Accounting, Taxation. Tax Advice, Secretarial, Business and Management Consulting, Computer Services, Corporate Services and Payroll Admin. A compotent staff compliment ensure high level of service to 35 monthly clients. The client base is made up of about 450 clients |
| When was the business established? |
The practice was started in 2005, but the current form and offices since 2009 |
| How long has the owner had the business? |
The current owner founded the practice |
How Does The Business Operate
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| How does the business operate on a daily basis |
Owner and his wife is hands on. The seller and the staff sees clients. Two staff members focuses on deceased estates and then they also have a lady specialising on HOA/Body Corporate work. |
| How are the clients attracted to the business? |
Word Of Mouth |
| What Advertising/Marketing is carried out? |
Website is the only form of advertising but they rely on word-of-mouth |
| Does the business have any contract work? |
No, 1 client is paying fixed monthly fees, the rest is invoiced adhoc. 35 of the clients is however regular monthly type clients |
| What competition exists? |
Normal competition from other firms
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| Seasonal Trends? |
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Financial Information
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| Vat Registered? |
Yes |
| Vat Documentation on File? |
Yes, seller will provide |
| Management Accounts? |
Yes |
| Audited Financials? |
Seller will provide |
| What as Cash/Credit Split? |
All credit |
| Debtors Book Age Analisys |
30 days |
| How can you improve the profitability? |
Expand the clients base |
| Is Seller Finance available and if so what is it? |
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 after a 6 to 12 month period to an APPROVED buyer. A structured deal will thus be considered. |
Staffing Of the Business
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| What is the total number of Staff? |
10 staff plus seller and his wife |
| Staff Breakdown |
4 clerks, 2 Deceased Estate Specialist, 1 Filing, 1 HOA/Body Corporate Specialist,1 Debtors Clerk/Secretarial Work, 1 Receptionist |
| Staff Special Perks and Bonuses? |
13th cheque tied to the business's performance |
| Are the staff on Contract? |
Yes |
| Does any of the staff have management potential? |
1 staff member is more senior but the practice requires owner supervision. 3 more senior staff members has left recently but the seller has not replaced then in light of the sale and the new owner that might want to introduce their own people |
| How involved is the Owner in running the business? |
Hands on auditor |
Premises Of the Business
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| When Does the Current Lease ends? |
Jan 2019
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| Is there an option to renew? |
Yes |
| What is the annual escalation % |
None |
| What are the Trading Hours? |
Mon - Fri, office hours |
| What is the square meters? |
210m2 |
| Is a copy of the lease available? |
Yes, on file |
| Do You require a license? |
SAICA/IRBA practice |
Assets Of The Business
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| Full Asset List available? |
Normal office equipment to run the practice. Held by a trust but will be transfered at no cost to the practice |
| Anything not included in the sale? |
There is a vehicle used by the business belonging to the seller in his personal capacity and you can buy that extra if you want or he will sell it out of hand to a third party |
| What is condition of the assets |
Good, none needs repairing |
| Any Assets on Lease/HP that Buyer needs to take over? |
The PABX is still under lease and the buyer must take it over |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Well Established practice
Staffed for continuity with clients
Decent monthly cash flow
Low risk spread amongst various client |
| WEAKNESSES |
Somewhat owner centric
Deceased Estate Work not core may be seen as a weakness to a new owner although it does spread risk
20% of the Turnover does come from 3 different management agents for the HOA work
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| OPPORTUNITIES |
You can expand the HOA work with the expertise you have
You can expand the Deceases Estate work with the expertise you have
You can leverage of the Axisting staff compliment and client base |
| THREATS |
None perceived and the Client warranty reduces your buying risk
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Summary
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| Why is this a good business |
Well established auditing firm that is properly staffed with a good client base. |
| Why is the owner selling it? |
Owner is emigrating
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