24-Seven Business Brokers

O' Hagan's For Sale

2010-12-08T17:44:00.000+02:00

For Sale O' Hagan's All reasonable offers will be considered, with flexible payment terms, with a minimum deposit.of 50%.

I have recently put onto my books an exciting O' Hagan's Irish Pub and Grill, which is focused mainly on the 25 plus age group market.The restaurant was well established, but closed due to bad management. Owners are relocating and have priced the business to sell. They have increased turnover by 70% since taking over in December 2008. Since their relaunch, they have increased turnover every month and have achieved breakeven in record breaking time.

Service fee is applicable
5% of turnover
This amount is paid monthly by the franchisee to the franchisor. It is the franchisor’s main source of income and covers the cost of maintaining and developing the franchise.

Advertising levy
3% of turnover
All marketing, advertising and promotional activities are decided by the Brand Manager.

The pubs are designed to make the customer feel at home whilst enjoying good food, good drinks and good company. If you enjoy long hours and entertaining people, this opportunity may be for you.

For further information, contact us on: 082 257 3213

International Chapter To Be Established In Southern Africa

2009-12-01T10:13:00.003+02:00

IBBA International Chapter To Be Established In Southern Africa

(Chicago, IL / Johannesburg, South Africa). The International Business Brokers Association (IBBA), the largest international non-profit association of people and firms engaged in the various aspects of business brokerage, mergers and acquisitions, is to formally establish an International Chapter in South Africa.

“This is a milestone for our organization as well as for building our global network of brokers,” explained IBBA chairman Andy Cagnetta, the Chief Executive Officer of Transworld Business Brokers, Inc. of Ft. Lauderdale, Florida. “We have many members and affiliate organizations around the world, but this will be our first link to Africa. It clearly demonstrates there is great interest in continuing to educate those in our profession as well as to promote the use of professional, certified intermediaries in business sales transactions.” The chairman of IBBA’s international committee, Pino Bacinello, CEO of Sunbelt Business Brokers Pacific Inc. and Pacific Mergers and Acquisitions Inc. in Vancouver, Canada, says “South African brokers and intermediaries will see the value of being a part of an international professional organization that promotes business brokerage, specific education, and certification, as well as foster professionalism and standards within the profession. This will be of great benefit to the current and future brokers and intermediaries in South and Southern Africa. By belonging to the IBBA Southern African Chapter, we can address the local needs of the members while having access to the global network of knowledge and resources.”

In addition, Bacinello said the Chapter will also benefit the members’ clients by raising the knowledge and professionalism within the industry. “Whether people are buying, selling or merging businesses, they can take confidence in knowing IBBA Certified Business Intermediaries have the expertise and knowledge to successfully and professionally handle their transactions.”

South Ekuhruleni Chamber of Business (SECOB) have been appointed to administer the establishment of the association in South Africa, the first meeting is set for the 08 December 2009. An official launch is planned for early January/February 2010. Parties involved in the profession who would like to be part of the establishment of this office are asked to contact Derek Fox of Succeed Business Brokers on 082 886 0651

Financing A Share Purchase - Is It That Simple?

2009-01-03T12:15:00.006+02:00

The Companies Act was recently amended to provide that a company may now provide finance to a purchaser to take up shares in the company.

Prospective investors wishing to buy the assets of a company lock, stock and barrel could buy all of the shares from the seller and there would, ordinarily, be no difficulty in arranging such a transaction. The assets of the company are valued by the owner of the shares and the purchaser, and the shares are bought for the valuation arrived at.

The purchaser who can pay cash for the shares simply pays the purchase price and the shares are transferred which avoids any expenses of having immovable property registered in the name of the company transferred to the purchaser.

Read the full article HERE

Source: Stephen Kennedy-Good of Denys Reitz

Consumer Bill to Boost Franchisees' Lot

2009-01-03T10:53:00.005+02:00

Good News for franchisees in South Africa. They should see their lives improve when the Consumer Protection Bill comes into play in few months. So says Rosalind Lake, an associate at legal firm Deneys Reitz.

The bill prohibits franchisors from insisting that franchisees buy products from suppliers nominated by them, even if that supplier is more expensive than another identified by the franchisee.

Lake says: "The bill looks set to dramatically improve the lives of approximately 25 000 franchisees in South Africa. The provisions are not as drastic as they might appear, but it will certainly require a shift in mindset. And franchisors will need to audit their franchise agreements and practices to ensure that they are compliant."

Read the full Article HERE

Buying or Starting a Business

2008-11-26T15:35:00.014+02:00

Starting a business today has been turned into a complex set of legislative red tape. Although let's be fair. You wouldn't want your neighbour starting an abattoir or a chemical recycling plant next door. Almost everybody has a soft spot for somebody starting a new business, or buying a business. We don't want people to repeat the same mistakes we made.

Starting or buying a business there are some rule you need to understand as you walk through the minefields of the needlessly time-consuming procedure, called bureaucracy. And if you think it's strictly a South African phenomenon - forget it, it isn't. Governments worldwide are pumping out volumes of legislation that restrict, hamper and limit business growth and in the same breathe telling businesses that they're trying to help them. It would make the tree huggers of the world run for the hills.

In South Africa, you may have to deal with:

Auditing Profession Act - auditors must report irregularities discovered while auditing a client’s financial statements — or face jail and for this service, they charge you the earth.
Bargaining Council – a collective organisation that forces you to pay more than you can afford, established in the 1940s but went through a name change. There is one for your industry
Basic Conditions of Employment Act – what time the employee starts work, has tea, lunch, tea, and goes home and make sure that's pinned up somewhere for them to see.
Broad Based Black Economic Empowerment (BBBEE) – to distribute wealth across a broader spectrum of South African society as possible
CIPRO - where all businesses have to submit their details annually with a fee and if not done, you may fine you have no CC or PTY registered
Close Corporations Act – similar to the Companies Act but less complicated
Companies Act – a complex set of rule for public and private and companies
Consumer Protection Bill – this Act has sought to protect the consumer from every angle, from against the good, the bad, the ugly, and every wolf.
Electronic Communications and Transactions Act – be careful what you write, sell, and advertise on the internet
Employment Equity Act – affirmative action, to promote and achieve equity in the workplace, by not only advancing people from designated groups but also specifically dis-advancing others.
Financial Advisory and Intermediary Services Act – don't give financial advice if you're not registered, even if you know the person is investing their money in an illegal scheme or making a bad business decision
Financial Intelligence Centre Act - to provide high quality, timeous financial intelligence for use in the fight against crime, money laundering and terror financing in order for South Africa to protect the integrity and stability of its financial system. That's why your cellphone provider is so paranoid about all your details
Labour Relations Act – it tells the employer that they have limited rights in their own business and how to conduct themselves
National Credit Act – don't lend money to people who can't afford to pay you back.
Promotion of Access to Information Act – for anyone who wants to know the what, when, why and how of your business for a fee and a reason.
SARS – don't mess with them – pay up then complain.
Workmen's Compensation - Workers who are affected by occupational injuries and diseases are entitled to compensation. You must register each employee, including yourself

If you'd like to know more about any act relevant to your industry go to www.acts.co.za or search for the appropriate government department.

For more information, contact Vincent on 082 257 3213 or email biz247@ymail.com

Full Time Business Brokers Needed

2008-11-23T11:01:00.008+02:00

Looking for experienced, Innovative, Progressive Full-time Business Brokers Needed for Edenvale, Bedfordview, Isando, Spartan, Greenstone Hills, Meadowdale, Bruma, Elandsfontein, Greenhills, Modderfontein and surrounding areas.

Must have own reliable transport, Cell Phone, and Internet access, A willing to work and earn a good commission

Training provided to new brokers.

Good Commission paid. (new broker's commission)

1. 1st sale 35/65 split
2. 2nd sale 40/60 split
3. 3rd sale 45/55 split
4. 50/50 split after third successful sale

Experienced Brokers commission 50/50 from first sale, plus R1000 petrol

Call Vincent on 082 257 3213 or email.
Visit my website at: 24 Seven Business Brokers or visit me @ Twitter

The end of the Close Corporation (CC) as we know it

2008-10-24T09:51:00.003+02:00

In all likely hood as of the 1st January 2010, no further CC registration will take place, thereafter a CC can remain in existence till 2020, provided that annual returns are submitted, even for dormant CCs. Those who do not submit the return together with R100 annual fee will be deemed dormant and removed from the database. However The New Companies Bill allows for the co-existence of the new Companies Act and the Close Corporations Act 1984, with amendments to the CC Act to reconcile the laws as far as practicable to avoid regulatory conflict. It is recognised that existing close corporations should be free to retain their current status until such time as their members may determine that it is in their interest to convert to a company.

New Companies Act
The new Companies Act will be the legislative framework for the formation and maintenance of small companies, which has drawn on the characteristics of the Close Corporations Act and is adequately streamlined and simplified to render it unnecessary to retain the Close Corporations Act. Once the new companies act is in force companies will not be allowed to convert to CCs.

The new legislation would redefine companies into not-for-profit companies (NFP), for-profit (FP) companies and Public interest companies (PIC) which are regarded as widely held companies. FP companies are divided into widely-held companies (WHC) and closely-held companies (CHC). Up till now, Pty (Ltd) companies have had a slight advantage over CCs because they are viewed in the market as more solid and sophisticated businesses. CCs, therefore will no longer be disadvantaged against because they are incorporated as a "lesser" entity.

Under the new law, small companies will be exempt from an annual audit, but only under a certain turnover. As soon as their turnover rises to a certain level, they will have to hire auditors. Currently a CC has no such obligation, no matter how high its turnover is. All it needs is its Accounting Officer's signature. The new act will require all companies, large and small, to prepare annual financial statements, which should promote sound financial management and encourage company sustainability of all sizes.

According to CIPRO, “It will continue to maintain the Close Corporations register indefinitely as far as membership, addresses, Accounting Officer etc amendments are concerned, but will no longer register new Close Corporations as at the full implementation of the New Companies Act. "

For further information contact Vincent on email at: biz247@ymail.com

Valuation of SMEs

2008-10-20T16:08:00.002+02:00

Valuation of SMEs

Business valuation is not an objective exercise, and neither a precise science. Business valuation is greatly a subjective issue, depending on who and what the valuation is done for. There are no right ways to estimate the value, only the many factors that influence the price for example;

The history and nature of the business the Company is engaged in.
The outlook for the overall economy and the industry the Company is in.
The latest financial condition of the Company.
The future earning capability of the Company and the associated related risks.
The capability of the Company to continue to generate the necessary cash flow to support a purchase.
The worth and value of the goodwill/intangible assets of the Company.

The price of a business will depend on the availability of accurate information and figures relating to the business. Essentially, price is a tariff, payment or sum that you are willing to pay for a business. Value, however, relates to how desirable or important the business is to buyer. Most businesses are sold because of their profitability, which is an attraction for buyers. A business that generates profits should establish a good selling price in the market place.

Determining the value of a business is one part of the transaction that is fraught with difficulties and differences of opinion. The buyer and seller often have different ideas about what the price of the business should be.

Boger and Link (1999) suggest that: “Fair market value is the price at which the (business) would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.” In other words the best standard of value is the market value, provided that the new owner(s) of the Company have the necessary resources and commitment to not only acquire, but also to grow the Company. Fair market value makes the assumption that all the relevant facts are known, which is accomplish through a rigorous due diligence process to verify all purported facts, estimates, calculations and suppositions and not rely solely on a valuation document to support a purchase decision.

In placing a price tag on your business, you need to consider:

Key factors: what factors are most important to buyers within your industry? What are secondary?
Adding value: How can you boost these important factors before the sale?
Normalisation of Financial Statements: How might your accountant adjust your financial statements, before showing them to potential buyers?
Valuation methods: What methods and formulas are used to put a price tag on a business?
Partial interests: If you're only selling part of the business, how does that affect the price?

For a buyer, the key is that an ongoing business has everything in place. Further issues to consider are the company's tangible and intangible assets:

Furniture/Fixtures/Equipment customary to the normal operation of the business.
All customer lists and information and past/present sales and marketing data.
All proprietary Company information and methods of doing business.
All rights/patents/trademarks for the Company’s proprietary products.
All rights to the Company trade name and Web site.
All Goodwill and other intangible assets not specifically listed.

Remember that valuations are not scientifically based; they're subjective. Valuation is a personal formula - What's the business worth to YOU?