MANDATE REPORT

1. History Background

Fully describe the business's activities

A plush salon exquisitely offering the latest in hair styles and treatments and also the latest in skin and body treatments. They focus is to offer luxurious treatments that are result orientated in a relaxing environment.  At this salon they continuously offer great specials to their clients on products and treatments.  This is a salon that focuses on the African client base.  They have a client base built up over 7 years.

How long has the business been established?

 7 years in the east of Pretoria.

How long has the owner had the business?

The current owner has it for the last 7 years. 

2. Present Market

How does the business operate on  a daily basis

 This is an owner manage business.

How are the clients attracted to the business

Word of mouth, great location in a busy street in the Eastern Suburbs of Pretoria.

What Advertising/Marketing is carried out

Limited marketing in Group on, Amazing vouchers and same pamphlets distribution is done, mostly word of mouth.

Does the business have any contract work

No, this is a cash operated business

What competition exists

None as far as we know

What are the seasonal trends

None perceived.

3. Financial

Is the business VAT Registered

Yes.

What VAT documentation is on file?

Yes.

Are there up to date management accounts?

Owner can supply.

What audited financials are available, income statement and or balance sheets?

 Can be requested from owner.

What percentage of the business is cash/credit?

Only cash

What is the age analysis of the debtor’s book?

A cash business. No debtors book

How could the profitability of the business be improved?

More aggressive marketing.

Is Seller finance available and for what amount?

NO.

4. Staffing

What is the total staff complement?

Total staff=3 including owner

Staff Breakdown and length of service

3 Salon workers. They all do every thing in the salon.

Do any receive special perks, bonuses or incentives?

Paid a commission of turn over.

Are they on contract?

No.

Do any have management potential?

Owner manage.

How involved  is the Owner in running the business

Owner is their every day.

5. Premises

When does the current lease end?

They salon are on a yearly lease comtract.

Is there an option of renewal & what period

Yes.

What is the annual escalation %?

10 % per year

What are the trading hours?

 Trading hours are from 8h00 to 18h00 from Monday to Saturdays.

What is the square meter age of the business?

+_100 sqrm. A bouble story business with Salon facilitys on the top floor.

Is a copy of the lease available?

Yes on request

Do you require a licence?

A Business Licence

6. Assets

Is a full asset list on file?

Can be prepared.

Are any items not included in the sale?

Yes all assets are included in sale.

What is their overall condition?

Good condition

Do any require repairing?

No

How have they been valued?

Owners estimated value

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

N/a

Will Seller settle or Buyer to take over?

N0

Are copies of agreements available?

n/a

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

The only salon that focus on the African market in a very busy street in the Rats side of Pretoria with a good settled client base.

Weaknesses

None perceived

Opportunities

More national marketing plan needs to be done. Business will automatically increase with the more focused market segment marketing plan.

Threats

None perceived

8. Reason For Sale

What is the reason for the sale?

The current owner has other business opportunities.

9. Conclusion

Why is this good business to buy?

 It is located in a very well known location. With good hands on marketing plan in the best growing market, can this business only grow and reached it potential.