MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Well established, well located valet centre / car wash for sale. 80% of the business consists of valets to car dealerships. Their customer base includes more than 25 dealerships.
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How long has the business been established?
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12 Years
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How long has the owner had the business?
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The current owner bought the business a couple of months ago after leaving the corporate world, but is now returning to it.
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2. Present Market
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How does the business operate on a daily basis
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Owner is actively involved in the running of the business.
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How are the clients attracted to the business
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Regular customer base. The business is very well located on the corner of two busy roads. The located attracts a lot of business
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What Advertising/Marketing is carried out
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Very little
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Does the business have any contract work
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No
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What competition exists
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No real competition exists in the area
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What are the seasonal trends
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None perceived
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3. Financial
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Are there up to date management accounts?
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Yes
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What percentage of the business is cash/credit?
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80% EFT and 20% cash
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How could the profitability of the business be improved?
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Approaching more dealerships in the area for their business.
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Is Seller finance available and for what amount?
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No
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4. Staffing
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What is the total staff complement?
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Owner and 15 workers
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How involved is the Owner in running the business
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Owner is actively involved in the running of the business. She is assisted by a manager. The manager is however re-locating to George, but the salary account makes provision for an amount of R4 000 for a manager.
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5. Premises
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When does the current lease end?
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1 Year remaining of current lease
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Is there an option of renewal & what period
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Yes, to be negotiated
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What are the trading hours?
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Mon – Fri 8am – 5pm, Sat 8am – 1pm
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Is a copy of the lease available?
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Yes
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Do you require a licence?
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No
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6. Assets
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Is a full asset list on file?
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Yes available and prepared for fair market value
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Are any items not included in the sale?
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No. The business has 2007 Ford Bantam bakkie that is currently on hp. This expense is part of the monthly expenses. Buyer to either take over hp, settle hp or exclude out of the transaction
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What is their overall condition?
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Excellent
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Do any require repairing?
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No
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How have they been valued?
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Fair market / Replacement value.
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Which assets are on lease/HP and with whom?
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2007 Ford Bantam Bakkie
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What are their settlement amounts?
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+- R55 000. Basically the value of the bakkie
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Will Seller settle or Buyer to take over?
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Buyer to settle, take over hp or exclude from sale
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Are copies of agreements available?
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Yes
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Are they presently insured?
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Yes
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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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Well located, well established and well run business with strong customer base
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Weaknesses
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None perceived
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Opportunities
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Signing up more dealerships in the area.
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Threats
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None Perceived
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8. Reason For Sale
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What is the reason for the sale?
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Owner is relocating to Balito
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9. Conclusion
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Why is this good business to buy?
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Well established, well located and well run business with a strong customer base. Due to the customer base the business is closed on Sundays
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