History and Overview Of The Business
|
| Fully describe the business's activities |
This firm is well established, since January 2003 as an accounting, tax, secretarial and consulting practice and since November 2005 as an auditing practice. The practice is mainly focussing on Auditing, Accounting, Tax, Secretarial and Consulting Services. The business is registered with IRBA, SAICA and SAIPA. This is a small practice with loyal clients and staff alike.
With 144 clients and 3 staff members, plus the owner, it still is owner dependent. A proper handover will have to form part of any purchase. To ensure this does happen the Seller is selling 50% initially and then the balance at a later stage to ensure this smooth and riskfree process takes place. In addition, you will get the added risk protection of a Turnover Warranty.
|
| When was the business established? |
2003 |
| How long has the owner had the business? |
Started it |
How Does The Business Operate
|
| How does the business operate on a daily basis |
Owner-managed and run with staff, manager and owner doing the work with supporting staff. |
| How are the clients attracted to the business? |
Referrals, Networking,Word Of Mouth |
| What Advertising/Marketing is carried out? |
Word Of Mouth |
| Does the business have any contract work? |
No, but longstanding client base. |
| What competition exists? |
Normal competition, the area is economically growing and expanding and that offers various opportunities locally and also in the city of Cape Town and the adjacent Cape Wine Lands.
|
| Seasonal Trends? |
Busier Tax Season |
Financial Information
|
| Vat Registered? |
Yes |
| Vat Documentation on File? |
Yes, VAT returns available on SARS efiling which can be provided upon request |
| Management Accounts? |
It will be provided when needed |
| Audited Financials? |
2018 Financial statements are available. Management accounts for 2019 will be provided when needed. |
| What as Cash/Credit Split? |
Credit |
| Debtors Book Age Analisys |
Most clients pay when they receive the invoice or within 30 days. There are debtors that are outstanding by more than 120 days, but they are now actively following up to collect the outstanding debt. |
| How can you improve the profitability? |
By increasing the client base and appointing article clerks |
| 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, turnover warranty for 12 months and the balance payable over 24 months in monthly payments, to an APPROVED buyer. A structured deal will thus be considered. |
Staffing Of the Business
|
| What is the total number of Staff? |
I5 Employees (3 Staff, 1 Manager, 1 Director) |
| Staff Special Perks and Bonuses? |
No perks, but an annual bonus depending on productivity |
| Are the staff on Contract? |
Normal Employment Contract |
| Does any of the staff have management potential? |
In place |
| How involved is the Owner in running the business? |
The owner is Hands On, and also involved in doing audit work and compiling financial statements. |
Premises Of the Business
|
| When Does the Current Lease ends? |
February 2020 with the option to renew for a further 2 years |
| Is there an option to renew? |
Yes your choice |
| What is the annual escalation % |
10% |
| What are the Trading Hours? |
8am - 5pm (Monday to Friday) |
| What is the square meters? |
250m2 currently |
| Is a copy of the lease available? |
Yes, on file |
| Do You require a license? |
Yes, professional body, SAICA/SAIPA and IRBA due to audits |
Assets Of The Business
|
| Full Asset List available? |
Yes |
| Anything not included in the sale? |
Will be discussed
|
| What is condition of the assets |
Good |
| Any Assets on Lease/HP that Buyer needs to take over? |
N/A |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
|
| STRENGHTS |
Loyal, regular, distributed and diverse clients
Good staff
Established for 16 years
Fee base with low concentration |
| WEAKNESSES |
Normal single partner aspect
|
| OPPORTUNITIES |
Expand the firm
Further potential to expand other services, such as safety files audits |
| THREATS |
None Perceived
|
Summary
|
| Why is this a good business |
The owner has continuously worked long hours and because of the recent expansion in getting new clients, requires an IRBA registered partner to assist with the workload. The owner also wants to spend more time with her young children. |
| Why is the owner selling it? |
It is a well-established and well-run practice with good staff and long-standing loyal clients. (some clients have been with them for more than 10 years)
|