Fully describe the business's activities?
Nursery school facility for ages 3 months to 6 years
How long has the business been established?
Since 2014 with change to Pty Ltd company in 2017
How long has the owner had the business?
How does the business operate on a daily basis?
Managed and run by two owners, teachers, assistant teachers and staff.
How are the clients attracted to the business?
By word of mouth referrals and local walks ins
What Advertising/Marketing is carried out?
Does the business have any contract work?
What competition exists?
Numerous local nursery schools but reputation ensures full classes
What are the seasonal trends?
Is the business VAT Registered?
Not required as an educational institution
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Minimal credit provided for some clients but not as a rule
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Many opportunities such as aftercare, homework/study centre, swimming lessons in heated swimming pool on premises.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
4 teachers 1 teaching assistant 4 caregivers 1 chef 1 groundsman/maintenance Some employed since inception some less than a year
Do any receive special perks or incentives?
Discretionary year end bonus. Extra percentage over annual increase for good performance
Are they on contract?
Do any have management potential?
Possibly, but would need training
How involved is the Owner in running the business?
Owner is fully involved
When does the current lease end?
Premises are owned by the seller who will offer a five-year lease at R20,000/month for the first twelve months, escalating at 5% per annum. A rental amount has been included as an expense in the business income statement. The purchaser will have right of first refusal to purchase the premises at the current bank valuation of R2.7m for the first twelve months and thereafter for the duration of the lease at a value to be assessed by the bank, or such lower amount that the seller may choose to accept from another buyer.
Is there an option of renewal & what period?
Can be discussed
What is the annual escalation %?
What are the trading hours?
6 am to 6 pm Mon to Thu 6 am to 5.30 pm Fri
What is the square meters of the business?
Erf size is 991sqm
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
List has been provided, which includes all furniture, fittings, equipment as can be seen on the premises.
Are any items not included in the sale?
Personal belongings of the seller which will be pointed out on request
What is their overall condition?
All in good working order
Do any require repairing?
How have they been valued ?
At estimated second hand market value
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Only necessary items
Continual annual growth without any marketing or advertising, due to a good reputation. Recently approved by the Health Department to accommodate 77 children. Demand exceeds supply for good quality nursery schools such as this.
Limited parking on premises, which can be rectified
Heated swimming pool currently providing lessons only to in house students. With additional swimming teacher, lessons can be offered to larger group of children resulting in considerably increased net profits. Premises can also be used for study/homework groups or extra lessons after hours and aftercare.
No real threats as the market is such that demand always exceeds supply in this business
What is the reason for the sale?
One owner wants to retire and the other wishes to emigrate
Why is this a good business?
There is an ongoing demand for good quality child care and early foundation training for children across a multi-racial spectrum. This is a well established school offering good quality learning in a loving, caring, safe environment providing quality education, good healthy well balanced meals at a value for money price. Premises have been modified to fulfill the needs of this business and the students for now and long into the future.
What is the price plus stock and the profit?
Price for the business as a going concern is R1,525,000. The purchaser will have an option to purchase the premises at a later stage.
Annual Turnover Amount between R 500 thousand and R 6 million