Fully describe the business's activities?
The business owns and hosts large databases of commercial and consumer data. This data is marketed and sold to businesses and other entities that require this data for, mainly, verification, marketing and sales purposes. The information is sourced from certain industries and in terms of data share agreements with the likes of client data, call centres, the CIPC, research companies, credit bureaus, government agencies and the like. This information is updated regularly (weekly). There is extensive amount of data relating to individuals and businesses. The services offerred include" ----- Data Services: 1. Marketing data 2. Data for sales leads 3. Data enrichment 4. Tracing 5. Data updates 6. Data re-sales 7. Bulk SMS services 8. Bulk email services 9. Data management services 10. Opt-in leads 11. Commercial reports 12. Trace reports 13. Collection snaps; and 14. Geo-location services ----- API Solutions: 1. The business has a range of API products that integrate to re-sellers and are used transactionally as a trace tool ----- Verification solutions 1. This a compliance tool for banks that will go live in January 2021. This is an API data service that does criminal checks, credit checks and fraud clearances Certain services are outsourced to other services providers For SMS, Whatsapp and email related services
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
3 to 4 hours currently but business growth will result in additional time being spent on the business
How are the clients attracted to the business?
Word of mouth, cold calls and referrals from business acquaintances
What Advertising/Marketing is carried out?
Does the business have any contract work?
What competition exists?
There are a number of competitors in the market
What are the seasonal trends?
Business is quieter during winter (June, July and August)
How did the Covid-19 pandemic impact the business turnover / daily operations?
No loss of revenue has occurred year on year during Covid.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
None, as no staff are employed and business is largely dealt with on a one to one basis, remotely or digitally through Zoom meetings etc.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, the Sage One financial package is used and updated on a regular basis
What Balance Sheet and Income Statements are available?
February 2020 AFS and management accounts
What percentage of the business is cash/credit?
20% is credit
How could the profitability of the business be improved?
Increase client base and fees. Costs are relatively low. Not much is done in terms of sales currenty and is done by the owner in-between managing the rest of the business. A dedicated sales resource would grow sales.
Is Seller finance available and for what amount?
The owner iwill consider a purchaser acquiring a majority share (say, 75%) initially and the balance of the shares at a later date at a new, revised value per share.
What is the total staff complement?
There are no permanent employees besides the owner. There are three part time resources that provide their skills and expertise, when necessary. They comprise two developers and a designer.
Give a breakdown of staff/ functions/ length of service?
1 x SQL developer who extracts the required data in the specific format for clients 1 x Web developer 1 x Marketing and designer of campaigns for clients
Do any receive special perks or incentives?
The SQL developer is incentivised to achieve performance targets
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
What are the trading hours?
8.00 to 17.00 weekdays
Where does the business operate from?
The business is operated from the owners premises. The management of databases and the ownership, maintenance etc. of the data server are outsourced to a third party service provider
What are the main assets of the business?
The main asset of the company is intangible in nature and comprises the data. The only other assets comprise office equipment necessary to run the business. The database and data server is managed by a third party service povider
How have they been valued ?
At cost. The data is refreshed on a weekly basis and is therefore alwways current and relevant
Are copies of agreements available?
Yes, data agreements with all data providers in place a are available
It is a small business, with competitive products and pricing and has low overheads.
The lack of a premanent SQL Developer position impacts on the service delivery and the ability to handle additional work at short notice. A sales resource is also required to source and attract new business.
If properly structured in terms of manpower, bigger clients could be attracted which would lead to the more productive and profitable use of resources. The same resources would be able to systemise processes and create solutions that are more efficiently produced and delivered to the client. This would create more capacity to acquire and service additional clients.
Thre are regulatory threats in terms of the new Protection of Personal Information Act (POPIA), the DMA (Direct Marketing Association) and credit bureau regulations. FOR THE LAST TWO -WHY?
What is the reason for the sale?
The owner is emigrating
Why is this a good business?
The business has great growth opportunities, generates an attractive ROI and owns large valuable databases of personal and business information that is relevant and updated on a weekly basis.
What is the price plus stock and the profit?
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million