"Selling your business is our business"
"Selling your business is our business"
What is the background of the FSP?
The business is a Category I Financial Service Provider (FSP) fully registered and wholly compliant
The owner started the business as a financial planning practice in May 2000 - 25 years.
Over the years the FSP's service offering to clients was expanded and as well as the required licensing / approved products.
FICA Compliance is outsourced.
All licenses registered in the Private Company's name.
The owner / shareholder (and only key individual) stopped giving financial advice or delivering intermediary services some time ago.
For the past few years he has kept the the FSCA licences and all the compliance requirements neatly up to date.
How does the business operate on a daily basis?
The FSP is not active and there are no activities / movement in the practice. The FSP is dormant.
The only aspect that the owner attended to was the renewal of the FSCA Licenses, the FICA Compliance requirements and the Professional Indemnity Insurance (annually renewed)
All these "trading requirements" are intact and neatly taken care of.
What Advertising/Marketing is carried out?
None
Does the business have any contract work?
No contract work - only a small annual inflow of commission of around R50 000 / R60 000.
This represent 2nd year commission.
Why is this FSP in the market
The owner stopped operating and seized all activities, financial advice and the like, around 5 years ago.
He concentrated on his other business ventures and during 2024 he emigrated.
Rather than closing down the practice, it was recommended that the owner / shareholder sells his shareholding in the entity with all its accreditation and licenses
Is the business VAT Registered?
Yes - the business is a Registered VAT vendor.
What Balance Sheet and Income Statements are available?
Available on file is the financial statements for the past 10 years.
What is the total staff complement?
There are no employees.
The owner / seller is the key individual and fulfills all tasks
Does the FSP operate from an office?
NO.
There is no office or lease agreement.
What are the main assets of the business?
The main assets consist of the FSCA Licence.
The FSP is authorised to provide financial services in respect of the following financial products:
- Long-Term Insurance subcategory A (Advice & Intermediary Service)
- Long-Term Insurance Personal Lines (Advice & Intermediary Service)
- Short-Term Insurance Personal Line (Advice & Intermediary Service)
- Long-Term Insurance subcategory B1 (Advice & Intermediary Service)
- Long-Term Insurance subcategory C (Advice & Intermediary Service)
- Retail Pension Benefits (Advice & Intermediary Service)
- Short-Term Commercial Lines (Advice & Intermediary Service)
- Pension Fund Benefits ( Advice & Intermediary Service)
- Shares (Advice & Intermediary Service)
- Participatory Interests in a collective Investment Scheme (Advice & Service)
- Long-Term Insurance Subcategory B2 (Advice & Service)
- Long Term Insurance Subcategory B2-A (Advice & Service)
- Long Term Insurance Subcategory B1-A (Advice & Service)
- Short Term Insurance Personal Lines A1 (Advice & Service)
Strengths?
Trading history of 25 years
Properly registered with the FSCA.
Structured as separate legal entity - Private Company
FICA Compliance
Weaknesses?
Inactive for the a period of time.
Small amount of monthly inflow / commission.
No active clients.
Opportunities?
Utilize the licences
Threats?
South African Economy.
What is the reason for the sale?
The owner / shareholder has emigrated and is no longer actively involved in the business.
Who will be the buyer of such small business?
This opportunity is meant for investors / financial advisors seeking a clean and wholly compliant financial service provider (FSP) with all the required FSCA licences, FICA compliance files and Professional Indemnity Cover (PI cover) in place and up to date.
The suggested deal structure is a Sale of Shares with all the licences issued in the name of the legal entity (Private Company)
