Is the business VAT Registered?
The Business is VAT Registered. Vat documentation and VAT 201 on file with Aldes Business Brokers.
What VAT documentation is on file?
1. VAT 201 for the last Year
2. Tax Clearance Certificates for both Companies
3. Income Statement for 2016 and 2017.
4. Management Ledger for 2018
Are there up-to-date Management Accounts available?
The Business owner did not draft Audit Management Account for 2018. Copies of his Ledger with the Internal Bookkeeper has been obtained. It is recommendable to note that the Business and Owner has there books in order and readily available.
Please be advised:
Turnovers and COS have been incorporated excluding VAT in the Income Statements.
In-Put and Out-put VAT has not been considered and or calculated as part of Profit Margins.
What Balance Sheet and Income Statements are available?
Balance Sheet and Income Statement are available for 2016 and 2017 as per the Financial Statement ending 28 February 2017.
Please be advised that the internal Income Statements as drafted by the Bookkeeper on the premises is available and ready for examination.
Please be advised of the following information in regard to the Income Statements.
The following Expenses are the Owners Personal expensive incorporated into the Business and we at Aldes has extracted these to only show the True Expense of the Business.
1. Medical Aid
3. Member Personal Salary
4. Traveling Expenses
5. Rates and Taxes on personal property.
What percentage of the business is cash/credit?
The Business does not receive much Cash, if at all. The clients mostly pay by EFT and or Credit / Debit Card.
What is the age analysis of the debtors book?
The Business does have a Debtors Book currently. Please be advised that the Debtors shall not form part of the Transaction and the Seller shall collect his Debtors on his own expense and record.
At the norm the Business does not have much Debtors. Only the Vendors - Eskom and the Municipality has a 30 day payment log. Please be advised that at time these to institutes can run up to a 90 day backlog in payments.
How could the profitability of the business be improved?
Profitability can be improved in the following recommendations.
1. Recalculation and management of exspenses in the Business.
2. Marketing and or an rep to maintain the regular clients and source new clients.
3. Moving the Business into better Vendors and expanding the Business into new areas and or products.
4. New premises and appearance for the Business.
Is Seller finance available and for what amount?
The Business is in the market for a realistic price and the Business owner shall be retiring hereafter. Therefore no Seller Finance is available on the Price and or Purchase of the Business. This shall be a cash transaction in full.
What is the payback period?
The payback period shall not be discussed for the seller has opted not to allow Seller Finance.
What is the ROI?
The Return on Investment is currently on a 27 Month Period. This does fall within the Mining and Engineering Spectrum in this industry for the R.O.I.. R.O.I. Percentage is 44%
Who is the bookkeeper/Accountant?
The Bookkeepers are Van Der Walt and Enslin. - This firm assist the Business with the Financial Statements and VAT return.
The Business also has a Bookkeeper in house on a Consulting "Contract Basis" to assist the Business owner in the Management and Income Statement, Payroll and Debtors.