Fully describe the business's activities?
This is a Financial Service Provider servicing an established client base as an Independent Practitioner
How long has the business been established?
The owner started the business in 2008
How does the business operate on a daily basis?
Personal interaction with clients per appointment and assisting such clients with financial planning.
How are the clients attracted to the business?
An established client base of clients.
What Advertising/Marketing is carried out?
New clients is sourced from a database
What competition exists?
Typical competition for this market consist of direct marketers and bank assurance.
What are the seasonal trends?
No specific seasonal trends. However the practice is closed for the December holidays.
What Service Providers/Insurers is the FSP contracted with?
This established practice supports Old Mutual, Sanlam, Liberty and Momentum.
Is the business VAT Registered?
Total annual fee income is less than R1million and business is not VAT registered.
Are there up-to-date Management Accounts available?
Bank statements is available to confirm income and expenses. Commission statements from the service providers also available.
What Balance Sheet and Income Statements are available?
We have a set of financial statements for the period ending February 2019 available.
What percentage of the business is cash/credit?
All income is received from the service providers and insurers
How could the profitability of the business be improved?
The owner is drawing an income and the business is also paying for his personal expenses.
Is Seller finance available and for what amount?
The seller is planning to emigrate and this will not be a possibility
What is the total staff complement?
Only one assistant helping the owner with emails, telephone calls, quotations and general office admin.
Do any receive special perks or incentives?
No perks or incentives being paid, only a fixed salary.
How involved is the Owner in running the business?
The owner is directly involved with the clients Potential buyer would need to engage with clients in similar fashion.
When does the current lease end?
The owner operates the practice from an office at his home.
What are the trading hours?
Monday to Friday from 08:00 to 17:00
Do you require a licence?
The potential buyer would need to be a licensed Financial Service Provider or alternatively need the Fit and Proper Requirements of the Financial Service Conduct Authority (FSCA) Category 1 license is required for long term insurance, retail pension benefits, pension fund benefits and collective investment schemes
What are the main assets of the business?
A few cabinets will be the only tangible assets. The goodwill consists of the client base and second year commission stream with the relevant insurers.
Correctly licensed Third party compliance officer Established client base Good spread of income - annual management fees on investments and long term planning fees
Though operated as a Close Corporation the owner is the sole representative and key individual Seller is emigrating and may not be available for an extended handover period
If buyer is from the industry there exist the opportunity of cross selling other product lines, specifically short term insurance
General economy of South Africa
What is the reason for the sale?
The owner is emigrating to New Zealand
Why is this a good business?
Solid practice with an established client base and low overheads.
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