Aldes Business Brokers

Summary

This is a great business with fantastic growth opportunity and potential of increased profits at the hands of an involved owner. According to Forbes "Top 5 Industry" rating for the industry. Stable annuity income through existing clientele. Further opportunities available through the Pastel agency incorporated in the business.

1. History Background

Fully describe the business's activities?

Outsourced bookkeeping and payroll services

How long has the business been established?

2 years

How long has the owner had the business?

2 years

2. Present Market

How does the business operate on a daily basis?

bookkeeping and administration under the supervision of the owner

How are the clients attracted to the business?

Internet advertising, radio, networking, word of mouth, franchisor referrals

What Advertising/Marketing is carried out?

Extensive networking, radio

Does the business have any contract work?

Yes

What competition exists?

Other sole prop bookkeepers and accounting firms

What are the seasonal trends?

More new clients January - April

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

Vat registration

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

Previous financial year and year to date

What percentage of the business is cash/credit?

Invoices are due on presentation

How could the profitability of the business be improved?

Hands-on overseeing of the staff

Is Seller finance available and for what amount?

will be discussed with qualified buyers

What is the payback period?

21 months

What is the ROI?

56%

4. Staffing

What is the total staff complement?

3

Give a breakdown of staff/functions/length of service?

2 senior bookkeepers and 1 jnr bookkeeper. More info available to qualified buyers.

Do any receive special perks or incentives?

13th Cheque end of November, year end lunch and women's day lunch.

Are they on contract?

No

Do any have management potential?

possibly

How involved is the Owner in running the business?

Daily

5. Premises

When does the current lease end?

Office on current owner's premises who is prepared to look at a long-term lease. Business can also be relocated.

Is there an option of renewal & what period?

to be negotiated

What is the annual escalation %?

see above

What are the trading hours?

8:00 to 17:00 Mon-Thur 8:00 to 14:00 Friday

What is the square meters of the business?

46 m2

Do you require a licence?

No

What lease deposit and/or other surety is required?

None currently

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

No

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued ?

Reasonable replacement

Which assets are on lease/HP and with whom?

None

7. S.W.O.T. Analysis

Strengths?

Outsourced bookkeeping, focused on delivering monthly reports and explaining them

Weaknesses?

Strong bookkeeping skills required, internet not yet strong enough for web-based solutions

Opportunities?

Internet

Threats?

SARS increased efficiency of monitoring clients;means bookkeeping needs to be of a high standard

8. Reason For Sale

What is the reason for the sale?

Owner wants to focus on new opportunities

9. Conclusion

Why is this a good business?

Fast growing industry, good staff

What is the price plus stock and the net profit?

R 500,000 including all assets.