MANDATE REPORT

1. History Background

Fully describe the business's activities

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.

How long has the business been established?

12 Years

How long has the owner had the business?

The current owner bought the business a couple of months ago after leaving the corporate world, but is now returning to it.

2. Present Market

How does the business operate on  a daily basis

Owner is actively involved in the running of the business.

How are the clients attracted to the business

Regular customer base. The business is very well located on the corner of two busy roads. The located attracts a lot of business

What Advertising/Marketing is carried out

Very little

Does the business have any contract work

No

What competition exists

No real competition exists in the area

What are the seasonal trends

None perceived

3. Financial

Are there up to date management accounts?

Yes

What percentage of the business is cash/credit?

80% EFT and 20% cash

How could the profitability of the business be improved?

Approaching more dealerships in the area for their business.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

Owner and 15 workers

How involved  is the Owner in running the business

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.

5. Premises

When does the current lease end?

1 Year remaining of current lease

Is there an option of renewal & what period

Yes, to be negotiated

What are the trading hours?

Mon – Fri 8am – 5pm, Sat 8am – 1pm

Is a copy of the lease available?

Yes

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Yes available and prepared for fair market value

Are any items not included in the sale?

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

What is their overall condition?

Excellent

Do any require repairing?

No

How have they been valued?

Fair market / Replacement value.

Which assets are on lease/HP and with whom?

2007 Ford Bantam Bakkie

What are their settlement amounts?

+- R55 000. Basically the value of the bakkie

Will Seller settle or Buyer to take over?

Buyer to settle, take over hp or exclude from sale

Are copies of agreements available?

Yes

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

Well located, well established and well run business with strong customer base

Weaknesses

None perceived

Opportunities

Signing up more dealerships in the area.

Threats

None Perceived

8. Reason For Sale

What is the reason for the sale?

Owner is relocating to Balito

9. Conclusion

Why is this good business to buy?

Well established, well located and well run business with a strong customer base. Due to the customer base the business is closed on Sundays