Fully describe the business's activities?
Pre-school approved for 100 children, although 65 are in attendance (3 months to 6 yrs) in Durban Southern Suburb, that has been successful since the 80's. 4 teachers & a cleaner operate the school on a daily basis under the owner's supervision. School hours are 6h30-17h00. Some meals are provided within the fees and cost structures.
How long has the business been established?
Since the 80's but since 1998 with the present owner
How are the clients attracted to the business?
The school is well known in the area where it has always been, which in addition to word of mouth referrals & the website attracts applicants. The teachers & environment ensure the enrolled kids (& parents ) remain happy.
What Balance Sheet and Income Statements are available?
AFS are not really appropriate, so one would assess the school firstly through the Financial portion at the end of this Report, then through secondary documentation, proving : 65 kids , less salaries for 4 teachers & a cleaner, food & other operating expenses , finally yielding a NP of R1m pa to the owner who only manage's the school. Some meals are provided within the fees and cost structures (under Cost of Sales within this Report).
What is the total staff complement?
4 teachers & a cleaner
How involved is the Owner in running the business?
The owner overseas the operations. as well as, another business, thus relying on the capable well trained staff to run the school from an operations level on a daily basis
Do you require a licence?
Registered with the Dept of Education for 100 children although only 65 in attendance.
The grounds & building are appropriate, in respect of class rooms, offices, kitchen, ablutions, play area. The property at R2.2m is up for sale with the business. In case it is the only option - An expense of R22 000 pm is within the expenses before the NP was calculated, to cover a rental cost.
What are the main assets of the business?
Teaching material, desks, chairs, shelving, playground equipment, telephone & computer, etc which are all adequate.
Long established & well known in the suburb Suitable premises Good teachers Licenced for 100 kids
The owner, is only there part of the day & has another business which takes up time
Increase marketing efforts to enrol more kids, pushing up the numbers allowed under it's licence & thereby profits.
That other schools enhance their marketing - reputation
What is the reason for the sale?
Owner wishes to reduce her work load as she nears retirement
What is the price plus stock and the profit?
The Sale Price is R1.95m off a turnover of R1.87m, netting the owner (incl benefits) some R1m pa. The Property is available at R2.2m (a rental cost of R22 000 pm is included in the expenses to cover such if the only option)
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