Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date information
What percentage of the business is cash/credit?
Clients invoiced monthly, payment in 7 days
What is the age analysis of the debtors book?
Varies between R100,000 and R125,000
How could the profitability of the business be improved?
Less personal expenses and owner doing more of the actual work
Is Seller finance available and for what amount?
Yes, in line with selling accounting practices the seller will accept a 50% cash payment and subject to a proper hand over and turnover warranty the balance after a 6 to 12 month period to an APPROVED buyer. A structured deal will thus be considered. Warranty structures also is available of the debtors, discuss with the broker.