Sectors / Category

Annual turnover

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  • Mandate: 34323
  • Added: 26 Jan 2021
  • AFS
  • 811

Big Data information provider in Johannesburg

Gauteng, Johannesburg
811
Mandate 34323
Added 26 Jan 2021
R 975,000* ZAR
Stock: R 0
Assets: R 477,289
R 61,073 ZAR
Ian Tennant
(PRINCIPAL)
Aldes Egoli
Gauteng, Hartbeespoort
Gauteng, Hartbeespoort
Summary

The Big Data information provider provides company and individual data to clients for their further analysis and actioning (e.g. for market research marketing campaigns, strategic decision support etc.)

SELLING PRICE AFS
R 975,000* ZAR
Stock: R0
Assets: R477,289
R 61,073 ZAR
Summary

The Big Data information provider provides company and individual data to clients for their further analysis and actioning (e.g. for market research marketing campaigns, strategic decision support etc.)

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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?
5 years

How long has the owner had the business?
3 years

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?
None

Does the business have any contract work?
No

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?
Yes

What VAT documentation is on file?
All

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?
No

Do any have management potential?
No

How involved is the Owner in running the business?
Totally involved

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

Strengths?
It is a small business, with competitive products and pricing and has low overheads.

Weaknesses?
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.

Opportunities?
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.

Threats?
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?
R975,000

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FRANCHISE DETAILS

Aldes Egoli

1 members
9 active mandates
Gauteng , Hartbeespoort
51 Woodlands Avenue Peacanwood Estate Hartbeespoort 0216
Hartbeespoort

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