History and Overview Of The Business
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| Fully describe the business's activities |
This accounting firm has two branches, one a recent acquisition but established for more than 10 years. The other was established two years ago. Accounting, Payroll, Secretarial, SARS, Independant Reviews, Annual Financials Statements, Various consulting/advisory
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| When was the business established? |
10 years (acquired 10 months ago) & 2 years |
| How long has the owner had the business? |
Seller started it and bought one 10 months ago |
How Does The Business Operate
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| How does the business operate on a daily basis |
The staff does the work and the partners work in and out of the office and reviews it |
| How are the clients attracted to the business? |
Word of mouth, service quality their main selling point, competitive pricing second |
| What Advertising/Marketing is carried out? |
Digital, ie Website, Google Adwords, Facebook and LinkedIn |
| Does the business have any contract work? |
Regular monthly clients, also a few retainers |
| What competition exists? |
Normal competition for the industry
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| Seasonal Trends? |
There is a bit of more work to complete during tax season. December & January quitter due to the holidays. Feb year ends are obviously busier. August is also busier |
Financial Information
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| Vat Registered? |
Yes |
| Vat Documentation on File? |
Yes, current and available. |
| Management Accounts? |
Yes |
| Audited Financials? |
Yes, 2017. Global and per branch in terms of profit and loss |
| What as Cash/Credit Split? |
Terms of 30 days |
| Debtors Book Age Analisys |
9% current, 32% 30 days, 12% 60 days, 14% 90 days, 33% 120 days |
| How can you improve the profitability? |
Growing it. Offices could easily be absorbed in buyers office depending on location thus saving on rental and overheads, productivity of staff can be managed better |
| 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 handover and turnover warranty the balance over a 24 month period to an APPROVED buyer. A structured deal will thus be considered. Please note the seller will not extend this option unless certain guarantees are in place. |
Staffing Of the Business
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| What is the total number of Staff? |
7 staff to remain. 1 manager - 8 month, 1 payroll - 8 months, 5 bookeepers - 1 to 2 years |
| Staff Special Perks and Bonuses? |
No |
| Are the staff on Contract? |
Fulltime emplyed |
| Does any of the staff have management potential? |
In place |
| How involved is the Owner in running the business? |
The partners are actively involved |
Premises Of the Business
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| When Does the Current Lease ends? |
Branch One - September 2018,
Branch Two - November 2019 |
| Is there an option to renew? |
Yes, in both cases
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| What is the annual escalation % |
8% |
| What are the Trading Hours? |
0:30 - 16:30 Monday to Thursday,
08:00 - 14:30 of Fridays
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| What is the square meters? |
Branch One – 105m2,
Branch Two - 95m2 |
| Is a copy of the lease available? |
Yes, on file |
| Do You require a license? |
You will have to register or be registered with a body like, SAIBA/SAIPA/SACIA |
Assets Of The Business
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| Full Asset List available? |
This is the purchase of clients, a block of fees. If you would like to add assets that can be discussed in addition to the clients |
| Anything not included in the sale? |
Fixed Assets
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| What is condition of the assets |
Great |
| Any Assets on Lease/HP that Buyer needs to take over? |
A large printer |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Loyal, regular, distributed and diverse clients
Established Western Cape clients
Profitable and productive staff
Low Risk Concentration |
| WEAKNESSES |
None Perceived
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| OPPORTUNITIES |
Absorb these clients into your own practice for immediate benefit and cost savings
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| THREATS |
None Perceived
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Summary
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| Why is this a good business |
Client Retention with the seller's exit strategy, the staff members remaining, profitable. Accounting clients in Cape Town are in high demand; this is a very good opportunity. |
| Why is the owner selling it? |
The partners are exiting the industry
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