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. There are two local staff members and the seller visits is bi weekly. The practice has an established client base.
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How long has the business been established?
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31 years. 24 Years with the founder, 6 years with another pwner, 1 year with the current owner. No loses of revenue during the previous sale and transition
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How long has the owner had the business?
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1 Year
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2. Present Market
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How does the business operate on a daily basis
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Clients visit the office to drop of documentation. The
seller also currently goes down once per week to visit the office and meet with clients to ensure the personal relationship is kept with the clients. The business operates with two staff members on site in the office.
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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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None apart from the magnetic decals on the car of the staff member
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Does the business have any contract work
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No, only long standing clients
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What competition exists
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Normal competition in town
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What are the seasonal trends
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Normal accounting tax seasonal move, but very constant income and billing r
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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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You buying a block of fees
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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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Most clients pay in the 60day period from Invoice. The only bad debt in 6 years was R15,000. The clients are therefore good payers
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How could the profitability of the business be improved?
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More clients should be added and the service offering can be expanded.
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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 60% cash payment and subject to a proper hand over and turnover warranty the balance over a 12 month period to an APPROVED buyer. A structured deal will thus be considered..
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4. Staffing
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What is the total staff complement?
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2 staff members that excludes the owner.
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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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Normal incentive bonus
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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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Month to Month
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Is there an option of renewal & what period
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N/A
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What is the annual escalation %?
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N/A
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What are the trading hours?
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N/A
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What is the square meterage of the business?
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199m2 but you only need about 36m2
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Is a copy of the lease available?
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N/A
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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 and equipment
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Are any items not included in the sale?
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N/A
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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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N/A
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Which assets are on lease/HP and with whom?
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Photocopier & Printer is a rental/lease
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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
Established 30 Years
Staffed, you can run it remote
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Weaknesses
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Country Practice, limits growth potential
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Opportunities
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Expand services to clients
Growth opportunities for energetic owner
Country Lifestyle
Nice Entry Level Practice to get into the industry
Can be a very nice branch
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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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The current owner bought it a year ago as part of a strategy to accommodate his daughter in his practice and branch out into the area. She is however emigrating and as result he doesn’t need to have the practice anymore nor can he sustain both practices with the same service levels.
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9. Conclusion
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Why is this a good business to buy?
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Well established, staffed and has had a few owners change hands in last 7 years with minimal impact
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