How long has the business been established?
The business has been in existence for the past 13 years.
How long has the owner had the business?
Fully describe this property and its income earning activities.
The premises is an actual homestead in a very popular and up market estate in the Upper Highway. The homestead was converted to a pre-school, in order to cater mainly for the young children living in the estate. It has grown over the years to a capacity of approximately of 36/37pupils. The ideal capacity size would be 30 pupils. There are "babies" or "tots" that are cared for and 25-30 pre-school pupils. Rates for the tuition and care are per child according to ages. There is also an aftercare facility that caters for children of parents that work full days. A holiday club is also in place, during the school holidays, and this is run by one of the appointed teachers.
What is the approximate age of the buildings?
Over 13 years. The building is about 200 square meters with a playground of 935 square meters. The normal "play ground " structures are in place, such as climbing frames, sand pit areas.
What is the zoning of the property and what can be developed thereon?
The home owners association and the board of trustees have consented to the operation of the school within the estate and for the services that it offers
Are there building plans available?
What is the erf size and the size of the buildings?
To be disclosed at due diligence stage
Is a property valuation available?
Yes. The owner has this valuation
How does the business operate on a daily basis?
The business is operational Monday -Friday and opens at 0715 hrs. and closes at 1200 hrs. The aftercare will close at 1430 hrs.
How are the clients attracted to the business?
There is an active website, but most of the enrolments are from new homestead sales and a small portion of walk-in trade. If a family moves off the estate and the parents want the child to stay on until local school start then the child is welcome to stay on at the pre-school
What Advertising/Marketing is carried out?
Does the business have any contract work?
All the parents of children sign a contract at enrolment stage. This contract is renewed every year for the new year of tuition.
What competition exists?
There are a few other pre-schools in the area, but no other one within the estate.
What are the seasonal trends?
No seasonal trends as the school year contract is for 12 months
Is the property being let by a letting agency?
No The property is owned by the owner
Is a copy of all the lease agreements on the property available?
Not at this stage. If the business potential owner does not want to purchase the school buildings then a lease will be drawn up by the owner. However the owner will give preference to a potential buyer who wishes to buy both the school and the business.
How did the Covid-19 pandemic impact the business turnover / daily operations?
As the school is in the confines of a large estate there was no real pandemic "downswing" as the school implemented all the restrictions that were required.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, for the past 3 years.
What Balance Sheet and Income Statements are available?
As the school has been operating for over 13 years there are financials and management accounts going right back to inception.
What percentage of the business is cash/credit?
All payments are paid at the start of each month in cash or EFT payments. The school does offer incentive terms for annual settlement payments.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
More holiday club activities could enhance the holiday revenues. Parties can be held on site for birthdays/celebrations where the facilities of the school can be hired out.
Is Seller finance available and for what amount?
How could the income of the property be increased?
Utilization of the facilities for functions or children parties.
What is the monthly rates and taxes payable to local authority?
This will be divulged to serious buyer at due diligence stage. The charges are incorporated in the monthly management accounts.
What rental deposit has been secured from the tenants?
n/a If a potential buyer of the business does not wish to buy the school buildings/facilities, then there will be a deposit of at least i months rent required.
What is the total staff complement?
Owner plus 3 staff members.
Give a breakdown of staff/ functions/ length of service?
The owner and the teaching staff are all qualified and the assistant also doubles up in a cleaning function. The staff have been actively employed for at least 3 years.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
Yes One staff member is High school qualified teacher and stands in to deputize for the owner if she is away.
How involved is the Owner in running the business?
The owner is very hands on and manages the school very effectively. The owner teaches the class that is "ready for grade R"
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
The building is owned by the business owner. The premises are essential for the school to operate in. The owner would like the building to be sold WITH the business. However if this is not an option for the potential buyer,, then a 24 month lease is to be entered into.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
School start at 0730 and closes at 1200 hrs. The after care continues until 1430 hrs.
What is the square meters of the business?
The school is approximately 200 square meters and the playground area is another 935 square meters.
Is a copy of the lease available?
Do you require a licence?
Yes The "governing body" has given the school a license to operate within the confines of the estate.
What lease deposit and/or other surety is required?
What are the main assets of the business?
The buildings and the playground structures are the main assets of the school. There is a value assessment from a commercial property company that was completed recently and this will be discussed with any serious buyer.
Are any items not included in the sale?
What is their overall condition?
Very well kept and in good working order.
Do any require repairing?
No. Repairs and maintenance is normally carried out during the December holidays.
How have they been valued ?
The buildings and structures have been valued at replacement value. The property has an evaluation certificate, that was independently completed recently.
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The convenience of the pre school being on the estate is a large attraction to the parent body and hence very much a strength. Well trained staff add value to the school for their quality teaching and care for the children.
There is no apparent weakness as the popularity of the school creates a demand for these children to go onto Private schools in the area. There is a waiting list of parents wanting to enroll their children in the school.
The facilities of the school can be utilized for other activities, such as parties/celebrations. Public holidays could utilize the premises for functions and family gatherings.
The estate security ensures that there is no risk or threat.
What is the reason for the sale?
The owner and her family are emigrating to USA.
Why is this a good business?
Very well managed school with good facilities. Secure and quality service of the teaching staff offer a sound investment opportunity.
What is the price plus stock and the profit?
The stock is approximately R5000 and is utilized in the school activities. The business has a Net Profit of over R900000.00 per annum.
Why is this property a good investment?
The property is in an up market estate and is well looked after. It is an asset to the homeowners who utilize the school for their young pre school children.
What is the asking price?
The business is valued at R2,150,,000.00 The property has an assessed value, presented by a commercial real estate company, of R3,250,000.00 Property and the business
Annual Turnover Amount between R 500 thousand and R 6 million