Project Description

Step into a ready-made operational business.

Where?

Southern Gold Coast

Business Attributes

  • Data base and premium client management systems
  • Infrastructure and back office facilities
  • Modern premises in prime location
  • Generous hand over protocols
  • WIWO option
  • Residual, consultative, subscriptive and new business income streams

The vendor is offering the opportunity to acquire a complete holistic financial services business that began in 1980 as an accounting practice with the addition of FP in 1992. They have created a truly ‘one stop money shop’ delivering a complete range of financial services that can be serviced from a convenient location on the Southern Gold Coast.

These services are not only the usual Financial Planning and Lending services offered but are expanded to take in the opportunities of such other services as: Accounting, Tax, Business Structuring and re structuring, Estate Planning and other paid administration services, so they literally don’t have to use any other external financial services provider other than online legal precedents or joint estate planning work with legal estate planning practitioners.

Sale of a going concern – NO GST on purchase

Everything the Purchaser needs to operate and run the business as a going concern is being provided as part of the sale. As such the sale is not subject to GST on the purchase price. If however, the laws change or it becomes required for GST to be applied to the transaction then the Purchase price will be plus the applicable GST which is payable by the Purchaser to the vendor and then paid or claimed back in the next BAS such that no net GST is paid or collected on the sale by either party (as is the case with all GST).

Lease fixtures and fittings

Access to the Lease assignment/guarantee by the Purchaser to pay the ongoing lease payments and to renew the lease at its expiry. The complete fit-out including the glass and partitioning, all furniture and equipment, electrical wiring and leads, fridge, etc located at the Office premises except for the principal’s PC, screen, and personal HP calculators. The current lease expires in early April 2018. Office Telephone and fax number are to be transferred as well.

Staffing

There is one casual staff person working 3 days pw for 7 hours per day on Tuesday, Wednesday & Friday.

Client and Data base

The approx. 280 existing clients and their investments, insurances, loans, accounting and tax revenue are all provided as part of the sale. This excludes the personal entities etc of the vendor and family. The database of client/contact details all within the Handisoft software regime. This can be exported to the purchasers system and/or provided within the software given they acquire their own licences for the Handisoft software modules used in the practice of Practice Manager, Ledger, and Tax. The current Handisoft practice manager database has the contact data going back for some 25 years so there are a further 2,000 contacts on the database many of which could be marketed to.

Revenue stream and investment required for purchase

The complete business at the location the Purchaser is acquiring will generate revenue net of GST on an ongoing basis currently (12 months from Feb 2017) the ongoing gross revenue from FP/Insurance is around $320K and $33K from Lending (both Net of GST) to this there is to be added upfront revenue on FP & Lending plus ongoing Accounting Tax fees. Forward 12 months Gross profit of $510K and business expenses (excluding owner payments) of $112K.

The purchase price is composed of the following:

Office premises, systems, database, fitout and equipment as above$70,000
Business client goodwill – past, present & future$1,080,000
Total sale price of business$1,150,000
Payable by Deposit on signing contract$125,000
Payable on completion$900,000
Balance payable in 12 months$125,000
Total sale price of business $1,150,000

Handover protocols

The vendor is available for a reasonable time to facilitate a smooth change over. If agreeable the current principal can be persuaded to continue contract work 2 days pw after that at the current premises for the corresponding period of the fee guarantee.

For more information contact  Jim Prigg on 03 5232 1500 or send an enquiry.