"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business can be best described as a Tutor Centre.
It delivers tutoring to learners in a classroom base. Â It offers international acknowledged curriculum to students of all backgrounds.
Students are supported with registration at institutions such as Cambridge as well as preparation and registration for exams
Principles of tuition is Christian based
How long has the business been established?
The owner started the business 8 years ago
What is on offer?
The owner is aiming to sell 50% interest in the business.
We've been mandated by the owner to introduce a partner who shares the vision of delivering top-notch tuition to learners in the greater Windhoek area
How does the business operate on a daily basis?
Tutoring is offered in a classroom environment by qualified and devoted facilitators.
The Centre operates in the same style and manner as a school.
Children with special needs are also accommodated for.
How are the clients attracted to the business?
Lots of "Word-of-Mouth" and repeat business.
A neat and active Facebook Page with lots of engagements from both current learners and previous students.
Also a solid and steady stream from existing learners - younger bothers and sisters
What Advertising/Marketing is carried out?
Well-designed pamphlets and leaflets being distributed.
Most of the enrollments are however purely by "word-of-mouth" and based on the name / reputation that the Centre has established in the market.
Does the business have any contract work?
Enrollments for tuition is a financial obligation and covered by a contract.
What competition exists?
Mainstream schools should be noted as competition
What are the seasonal trends?
The commencement of each semester during January tends to be more busy than other months due to influx of new enrollments.
Is the business VAT Registered?
The business is not VAT registered.
Are there up-to-date Management Accounts available?
The businesses utilizes a Patel Accounting system and month-to-month statements are readily available.
What percentage of the business is cash/credit?
A once off Registration Fee, payable at registration in cash.
Tuition fees paid by parents monthly in arares
Discounts for settlement of annual students fees paid upfront.
What is the age analysis of the debtors book?
The business experienced a period of slow inflows causing an above average bad debts scenario.
New systems installed and the accounts receivable is now inline with market norms.
How could the profitability of the business be improved?
The owner wants to establish an Exam Centre which will have a immediate and direct impact on the bottom-line.
Another options to consider is relocation to alternative premises to accommodate a Laboratory.
What is the total staff complement?
Total staff compliment of 19 plus the Owner
They also have a zoom class out of Zambia
Give a breakdown of staff/ functions/ length of service?
2 X Admin staff:
One in charge of Office Administration & assisting the owner
One taking care of student administration such as registration on the study platforms
14 X Facilitators (call them teachers)
Classroom base tuition
One of the facilitators delivers tuition via Zoom platform (not locally based)
2 X Cleaners
General cleaning and upkeep of the facilities
Do any receive special perks or incentives?
The owners allows the facilitators to offer After Hours ("Aftercare") tuition.
The arrangement for such extra classes is on a per student basis and the teachers are paid directly (not via the Centre)
Are they on contract?
All employees are on contract and the HR / Payroll function is taken care of by a third party.
Do any have management potential?
The owner is satisfied with all the staff and their ability to manage / run the facility in her absence.
How involved is the Owner in running the business?
The owner is fully involved in the daily activities at Centre.
When does the current lease end?
The current lease expires at the end of 2024
Is there an option of renewal & what period?
An option to renew the lease is available with indication from landlord that they are also happy to further extend the lease agreement.
What is the annual escalation %?
Annual escalation of 7%
What are the trading hours?
Mondays through to Fridays from 08:00 to 13:00
Weekends - closed but available for after hour classes
What is the square meters of the business?
Approximate 1 600 m2
Is a copy of the lease available?
We have a copy of the lease agreement on file
Assets
An extensive asset list and all in good condition
All assets included
Assets at fair value
Owner's private vehicle not included
Strengths?
Well Established and a known brand
Good monthly Cash Flow
Definite need in the market
Learner focused approach
Weaknesses?
Further growth hampered by size of property - availability of classrooms.
Opportunities?
Registration as Exam Centre
Creating a home schooling group
Proper Website/ Advertising
Registration as a Private School
Threats?
Owner dependent
What is the reason for the sale?
Owner is wishes to expand the business to the coastal regions.
Why is this a good business?
Excellent opportunity to invest in an established business with a service offering in great demand with sizable scope for growth.
