loopy #5407

I am a bit confused by what is going on with the various companies.

SWITCH ACCOUNTANTS 4 RESULTS appears to have been incorporated in January of this year. Was it formed specifically to combine two other accounting firms?

What are the two companies you are planning on purchasing? Bathurst Moore, who I believe is an existing Marketlend borrower, appears to be one of them. Who is the other? Samuel Testa & Company?

What exactly is going on? Samuel Testa appears to be the principal of all three companies involved.

In addition to this loan, you will be taking existing debt – at least that of BM. What will be the aggregated net income and total debt of the consolidated company?

What are the purchase prices of the two companies you want to buy? If it is more than the value of this loan listing, where will the rest of the funding come from?

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Primecorp #5411

Switch Accountants 4 Results Pty Ltd was incorporated for the purpose of acquiring the fee base of both trading entities i.e. Bathurst Moore Advisory Pty Ltd & Samuel Testa & Company, hence consolidating the businesses into on entity. The one entity will provide a broader range of services in QLD and NSW.

Samuel Testa is the sole director/business owner across all entities. Samuel Testa is the holder of all key registrations such as Tax Registration, Credit Licence, and Public Practice Certificate etc.

Currently Bathurst Moore Advisory Pty Ltd has borrowings with Marketlend totally $ 25,000.00. The company borrowed these funds to on-lend to a start-up business. It is anticipated that this debt would be extinguished from the $ 160,000 advance.

Accounting practices are usually valued on a $ for $ basis. Based on this the businesses would be worth in excess of $ 360 K.

The valuations attached of the business are based on the future maintainable income basis; taking into account the net profit after all operating expenses.

Net income would be $ 160 K and debts amount to $ 25 K with Marketlend.

$ 160 K is the total funds required to acquire both businesses no additional funding required.

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