Key Features
Regular Clients
3 Staff
Bookkeeping, Accounting, Tax & Payroll
R1.20 Fee Ratio
Turnover Warranty
50% Vendor Finance
Balance over 24 months as terms
29% ROI Pre-Tax
Seller Discretionary Earnings of 35%
IRBA Work could be reintroduced
Seaside Living In Western Cape
Established 22 years
Association ensures soft landing
Smooth Handover
Dominant Firm In Area
Predicted Area Growth Ensures Future Growth
Covid19 Already Factored In
This is an ideal opportunity for someone to move out of the rat race to wonderful surroundings and a much better way of life.
This is a complete accounting solution provider, including management accounts, payroll services and Annual Financial Statements. The current owner by choice stopped IRBA work, but this can be resumed.
The practice operates in association with three other Chartered Accountants who operate together to save costs, while you operate on your own for greater personal freedom and your own account.
Ideal firm for a dynamic young IRBA qualified auditor that would like to be based in the area and get away from the city life.
Ideal firm for a dynamic young IRBA qualified auditor that would like to be based in the area and get away from the city life.
The seller will ensure a smooth handover and transition of the clients and provide a 12-month warranty.
| PRICE | R2,200,000 |
|---|---|
| Fees Pa Warranted | R1,829,059 |
| Expenses Pa | R1,192,644 |
| Profit For Year* | R636,415 |
| *Profit = Seller Discretionary Earning | |
| Fully describe the business’s activities |
They provide accounting services to businesses (65.4%) and also assist Individuals (16.4%). The other work makes up 18%. If you are IRBA registered you can significantly increase the fees. The firm provides the full range of business consultancy, valuations, estate planning, administration of estates, installation of accounting software, all aspects of taxation, secretarial services and are involved with the management of Body Corporates. |
| How long has the business been established? | Since 1999 |
| How long has the owner had the business? | Seller joined in 1999 |
| How does the business operate daily? | Owner-managed and run. |
| How are the clients attracted to the business | Mainly reputation and word of mouth. |
| What Advertising/Marketing is carried out | Linkedin, Google adverts in the local paper from time to time |
| Does the business have any contract work | Not as a rule but a long-standing client base. Executor appointment in a number of wills. Potential to grow this business |
| What competition exists | Normal competition. The firm is the predominant firm in the area by far but with growth in the area predicted there will be opportunities and more competition |
| What are the seasonal trends | Busier tax season |
| Is the business VAT Registered | Yes |
| Are there up to date management accounts? | Yes |
| What annual financials are available, income statement and or balance sheets? | Will be provided |
| What percentage of the business is cash/credit? | Mostly credit. Debtors book is R300,000 |
| What is the age analysis of the debtor’s book? | Most clients pay 30/60 days Some get extended terms some pay when they receive the invoice |
| How could the profitability of the business be improved? | Someone with energy can increase the fee base and restart the audit business. The seller never had to look for work in 20 years. At his current age, a new long term potential client is less likely to start a long-term relationship with someone approaching retirement. Huge opportunity |
| Is Seller finance available and for what amount? | 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 24 months. |
| What is the total staff complement? | 3 staff members, also a shared receptionist and messenger/cleaner |
| Staff Breakdown | Details of each staff member to be discussed with the buyer |
| Do any receive special perks, bonuses or incentives? | No, except refund of travel and a 13th cheque |
| Are they on contract? | Employment Agreements |
| How involved is the Owner of running the business |
The owner delegates, reviews and does special consultancy work |
|
When does the current lease end? |
Details to be discussed with the buyer, but the association own the building, so the lease will be available |
|
Is there an option for renewal & what period |
Yes |
|
What is the annual escalation |
8% |
|
What are the trading hours? |
Office Hours, 08:00-16:30, in time for the walk along the beach! |
|
What is the square meterage of the business? |
Whole Association 447m2, the seller share is 74m2 with use of the common area for reception and meeting rooms |
|
Is a copy of the lease available? |
Yes |
|
Do you require a licence? |
Yes, professional body, SAICA,/SAIPA/ACCA and for audit if you plan to do them IRBA etc |