Summary

Well established cash business with good returns on investment. Easy to run.Property included.

1. History Background

Fully describe the business's activities?

Day care and Nursery school ,babies to Grd R. For all pre-school ages according to the prescribed curriclum. Registered for 50 children.

How long has the business been established?

The owner started the business 12 years ago.

2. Present Market

How does the business operate on a daily basis?

The school is opened by owner/and teachers at 06h30 and closes at 17h30. The school fees are payable in advance on a monthly basis.

How are the clients attracted to the business?

The school has been established for a long time. excellent reputation and good care.

What Advertising/Marketing is carried out?

Advertised in the local paper, 6 shopping centers and on TV promotions.

What competition exists?

There is one other school in close proximity.

3. Financial

Is the business VAT Registered?

The business is VAT excempt.

Are there up-to-date Management Accounts available?

Management accounts are available

What Balance Sheet and Income Statements are available?

Balance sheets are available.

What is the payback period?

The pay back period is 63 months which might seem too long, but that includes the property from where the school is operating. Value R700 000,00

What is the ROI?

The ROI is 19 %. Influenced by the inclusion of the Fixed property.

4. Staffing

What is the total staff complement?

Total of 6 staff members which comprises of 4 teachers, 1 cook and 1 cleaner.

Give a breakdown of staff/functions/length of service?

The cook has been employed for 8 years, 2 of the teachers for 5 years. 1 teacher for 3 years and the other teacher for 2 years.

Are they on contract?

The staff is on a 12 month contract basis.

Do any have management potential?

Yes, one has management potential.

How involved is the Owner in running the business?

The owner runs the business on a full time basis, however, she does go on holiday from time to time.

5. Premises

When does the current lease end?

House/building belong to owner. Is sold with the business

What are the trading hours?

The trading hours are from 06h30 to 17h30 Mondays to Fridays

What is the square meters of the business?

The stand is 990 square meters and the house about 250 square meters

Is a copy of the lease available?

The owner owns the property where the business operates from and it is included in the purchase price.

Do you require a licence?

The business is registered as a Creche and have the necessary documents on file. The maximum number of children allowed is 50, although there is currently only 30 children enrolled.

6. Assets

Is a full asset list on file?

Yes there is a full asset list on file

What is their overall condition?

Very neat and tidy . Very good condition

Do any require repairing?

No reparations required

How have they been valued ?

By the owner

What are their settlement amounts?

The outstanding R120 000.00 that is outstanding on the property will be settled by the owner.

7. S.W.O.T. Analysis

Strengths?

Well established, Good systems in place.

Weaknesses?

State of economy

Opportunities?

To run at full capacity. Currently only 30 children attending but the capacity is 50.

Threats?

None

8. Reason For Sale

What is the reason for the sale?

The owner wants to retire.

9. Conclusion

Why is this a good business?

Well established cash business, easy to run and growth potential.

What is the price plus stock and the net profit?

R 1 150 000,00