Is the business VAT Registered?
The business is VAT registered
What VAT documentation is on file?
VAT documentation will be made available during due diligence.
Are there up-to-date Management Accounts available?
Management accounts for the period ending February 2018 are on file.
What Balance Sheet and Income Statements are available?
Financial statements for the year ended February 2017 are on file. The accountant will only finalize the 2018 financials in a few months time.
What percentage of the business is cash/credit?
30% of the sales are to regular plumbing companies, the balance is cash or on credit/debit card. The business has a swipe machine available.
What is the age analysis of the debtors book?
Most of the plumbing companies enjoy 30 day accounts, some of the smaller plumbers pay within 7 days. The business enjoys up to 60 days credit with their suppliers, they however prefer to pay within 30 days to benefit from the additional 2,5% discount.
How could the profitability of the business be improved?
The landlord will give this business 1st option to lease bigger premises where they can have a showroom. The suppliers have undertaken to do the displays for free. The showroom will enhance the walk in business as most clients would like to touch and see the products. The business could also employ a full time plumber.
Is Seller finance available and for what amount?
The seller will look at all reasonable offers from qualified buyers.