Fully describe the business's activities?
The business is a specialist recruitment company whose niche focus is predominantly Executive and Senior Placements in specific areas. Their focus is on providing outstanding service, while simultaneously delivering superior results to clients and candidates alike. They specialise in professionals within the following areas of recruitment, namely: Finance, Insurance and Financial Services, Information Technology, Communication, Engineering, Legal and Human Resources. The team of highly skilled, professional consultants are supported by an impressive infrastructure, designed to ensure rapid delivery of the right candidate without compromising levels of service and support. This team includes Researchers, Customer Care Officers, Business Development Executives and Recruitment Consultants. They aim to customise the recruitment processes to suit the needs of both client and candidate. The company has an extensive client base which encompasses decision-makers within a broad spectrum of business including merchant and commercial banks, development fund institutes, auditing firms, professional organisations with the public and private sectors, consultancies, technological enterprises, electronics, and corporates spanning a diverse range of industries. Their Flexible Resourcing solution entails: - Permanent Recruitment Contingency and Project-Based Recruitment Retained Search Service - Long & Short Listing Service - Temporary Recruitment - Executive Search and Head Hunting - Response Handling Services - Advertising Agency Service - Disability Recruitment - Character and Reference Checks - Background screening
How long has the owner had the business?
The owner established the business in 2003.
How does the business operate on a daily basis?
They start their day with a team meeting to discuss the key activities of the previous day, action plan all urgent items and other activities for the day. The Process followed for each recruiting specification is as follows: - Receipt of a detailed Job description â Qualify the spec with the client and obtain other key information regarding the position. -Advertise â media and online (immediate) -Source candidates from internal and external databases d) Screen online response. -Conduct outcomes-based interviews with suitable candidates -Conduct employment, character, reference and qualification checks and verifications. -Present short-list of VCâs to client wit summary skill set and suitability. -Co-ordinate all client interviewed and comprehensive briefing of candidates -Debrief interviewed candidates and facilitate structuring of offers -Customer care activities and Mentoring Programmes for placed candidates Monitoring and supervision is provided at every stage of the process to ensure service quality and delivery.
How are the clients attracted to the business?
Business development is an on an ongoing exercise by marketing their services to new and prospective corporate clients. Their tender engagements have also proven to be very successful where a larger number of their clients have being acquired through this process.
Does the business have any contract work?
YES, contract work has been secured via fixed period tender bids which the business had tendered for and was successful. The business has several current contracts with a maximum period of three years. The majority of the contracts that they hold have been in place for over ten years and have been renewed after every three years due to the quality of the business's service delivery.
What competition exists?
Although there are a number of agencies in the market, this business competes only with the top end of the market. However due to the areas of their specialisation in their industry and the expertise held by the team, they believe that they outplace their competion when it comes to those very specific areas.
What are the seasonal trends?
Recruitment during the year is fairly stable but slows down during the December and January periods. This tends to pick up after the financial year end (March) where corporate budgets become available and resourcing needs increases to support strategic plans of the many corporates.
Is the business VAT Registered?
The business is a registered VAT Vendor.
What VAT documentation is on file?
None, the seller will release VAT returns to a buyer during the due diligence process.
Are there up-to-date Management Accounts available?
Yes, we have Management Accounts up to end December 2017.
What Balance Sheet and Income Statements are available?
February 2016 & 2017.
What percentage of the business is cash/credit?
The nature of this business is 100% credit â 30 day terms.
What is the age analysis of the debtors book?
120 + 90 60 30 Current 24% 11% 49% 9% 8%
How could the profitability of the business be improved?
Innovative Marketing Strategies will increase the volume of business. The growth in turnover will need to be supported by additional human resources. Although there will be a cost increase, the cost to income ratio will decrease based on the available capacity to accommodate business growth.
Is Seller finance available and for what amount?
No, the seller will not consider vendor finance and expect a full payment on the effective date
What is the payback period?
What is the ROI?
What is the total staff complement?
12 excluding the owner.
Give a breakdown of staff/ functions/ length of service?
We have a detailed staff list on file but to summarise there are 3 x Snr Talent Acquisition Researchers the shortest length of service 2 years with 1 researcher being in the business for 6 years. 7 Recruitment Researchers length of service ranging from 6 months to 2 years, 1 x Receptionist & Office Administrator and 1 x Office Maintenance and Refreshments employee.
Do any receive special perks or incentives?
The company has a Commission policy where staff are paid a commission of 10% of the fees billed on a placement. The earning potential is hence unlimited
Are they on contract?
All staff are employed on a contract basis with a minimum of one year and maximum of three years. 1 staff member is employed permanently.
Do any have management potential?
Two of the staff have management potential and they are empowered and mentored in this regard.
How involved is the Owner in running the business?
As much as the owner is involved in the day to day overseeing of the business, her role is primarily strategic in nature. Professional and quality of service is key to continued and sustained business with their clients, therefore the owner takes an active role in managing quality during the recruitment process. However, the recruitment team is instrumental in the facilitation of the entire recruitment process and are proficient in achieving set company targets independently. The owner has immigrated from South Africa to Australia in 2015 and travels between countries periodically and the team manages the process independently.
Is there an option of renewal & what period?
Yes, there is an option to renew the lease. The current landlord is flexible with lease terms.
What is the annual escalation %?
What are the trading hours?
8:00 am to 16:30 pm Monday to Fridays. The staff are welcome to start earlier and finish later than the times above, if and when required as it is very important for them to be flexible to meet with candidates who cannot meetings during normal office hours.
What is the square meters of the business?
Is a copy of the lease available?
We do have a copy of the lease on file.
Do you require a licence?
No licence as such is required but the business is registered with APSO and the Department of Labour as a Private Employment Agency
What lease deposit and/or other surety is required?
2-3 months in advance. Negotiable with Landlord.
What are the main assets of the business?
Furniture & Office Equipment.
Are any items not included in the sale?
The motor vehicle, Picture frames In Boardroom (3) and one behind directors desk, mirrors (2) and a painting (1) in the reception area is excluded from the asset list as it is private possessions of the owner.
What is their overall condition?
How have they been valued ?
The owner with the assistant of the account produced a list of assets and valued it.
Which assets are on lease/HP and with whom?
Are they presently insured?
The contents of the office are insured.
Strong effective and highly skilled team; Established Clientele; Established business with successful track record; Strong Management / Governance; -Strong networking skills; -Low cost to income ratio; -DFI Specialist; -Sophisticated, screening mechanisms; Industry insights based on pragmatic experience.
Working capital requirements as a result of payment terms with clients.
The current wind of change in SA will lead to growth, especially in the top end of the market where the demand for high-quality skills and experience will be enormous; The ability to decrease fixed costs as business increases; Online Market; The statistics on the failure of new entrants speaks load and clear.
Economic pressures faced by clients may vary demand.
What is the reason for the sale?
The owner emigrated to Australia and her entire family already resides there. Since 2015 she had been travelling back and forth between the two countries for business purposes. Her younger children are now at a school going age and will be starting school in 2019. It is not possible for the children to live away from their mother for extended periods at their tender age while she travels without them.
Why is this a good business?
Well established with an excellent reputation and long-standing clients. Staff are well trained and the business can continue for extended periods without the Seller having to be present in the office. Most of their client's are contract based.
What is the price plus stock and the net profit?
The asking price is R10,6m with an average net profit of R 4,498,527p.a. before owner's drawings, depreciation, interest and tax. (Up to and including May 2018)
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