|
MANDATE REPORT
|
|
1. History Background
|
|
Fully describe the business's activities
|
Agricultural machinery and implements dealership for Asian tractors and implements. Please note the figures presented are the forecast figures for the dealership
|
|
How long has the business been established?
|
While this is a new dealership opportunity, the importer distributor has been around since 1991 and specifically vehicles since 2007
|
|
How long has the owner had the business?
|
NEW dealerships
|
|
What steps are in place to solve "load shedding" problems
|
N/A
|
|
2. Present Market
|
|
How does the business operate on a daily basis
|
The preference will be for owner run dealerships
|
|
How are the clients attracted to the business
|
This will require advertising and marketing by the dealership, visiting local service centres, etc.
|
|
What Advertising/Marketing is carried out
|
Advertising and marketing local to the dealership, the distributor is also looking at national opportunities.
|
|
Does the business have any contract work
|
Dealers will be able to go looking for contracts with trucking companies, etc. Also look to tenders.
|
|
What competition exists
|
Your other tractor brands
|
|
What are the seasonal trends
|
Spring through to Autumn are peak periods
|
|
3. Financial
|
|
Is the business VAT Registered
|
|
|
What VAT documentation is on file?
|
|
|
Are there up to date management accounts?
|
|
|
What audited financials are available, income statement and or balance sheets?
|
|
|
What percentage of the business is cash/credit?
|
|
|
What is the age analysis of the debtor’s book?
|
N/A
|
|
How could the profitability of the business be improved?
|
|
|
Is Seller finance available and for what amount?
|
|
|
4. Staffing
|
|
What is the total staff complement?
|
Normally the owner and one salesperson
|
|
Staff Breakdown and length of service
|
1 x Manager (Initially the owner)
1 x Salesperson (to be added later) |
|
Do any receive special perks, bonuses or incentives?
|
N/A
|
|
Are they on contract?
|
N/A
|
|
Do any have management potential?
|
N/A
|
|
How involved is the Owner in running the business
|
The owner should be fully involved in the running of the business.
|
|
5. Premises
|
|
When does the current lease end?
|
What is entered into
|
|
Is there an option of renewal & what
|
N/A
|
|
What is the annual escalation %?
|
N/A
|
|
What are the trading hours?
|
Mon - Fri 8am to 5pm
Sat 9am to 12am
|
|
What is the square meterage of the business?
|
300m2 is the right size |
|
Is a copy of the lease available?
|
N/A
|
|
Do you require a licence?
|
No but will have an agreement with the importer when buying a dealership
|
|
6. Assets
|
|
Is a full asset list on file?
|
Will be supplied as part of the dealership
|
|
Are any items not included in the sale?
|
|
|
What is their overall condition?
|
Will all be new
|
|
Do any require repairing?
|
No
|
|
How have they been valued?
|
|
|
Which assets are on lease/HP and with whom?
|
N/A
|
|
What are their settlement amounts?
|
N/A
|
|
Will Seller settle or Buyer to take over?
|
N/A
|
|
Are copies of agreements available?
|
N/A
|
|
Are they presently insured?
|
N/A
|
|
7. S.W.O.T. Analysis
|
|
Strengths
|
Strong will established brand in South Africa
Will be the only dealer in the allotted area
Excellent service and backup
Price of the product!
|
|
Weaknesses
|
Only that this will be a new dealership
|
|
Opportunities
|
Farming, Tenders, African farms
|
|
Threats
|
None perceived
|
|
8. Reason For Sale
|
|
What is the reason for the sale?
|
New dealerships, distributor is looking to expand.
|