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MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Car wash located in a very busy shopping centre. The business also does valet work for +/- 9 car dealerships. The business operates from the under roof car park area and has 2 wash bays fitted with grease traps. The car wash washes +/- 1500 cars a month and between 5 and 10 full valets a day
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How long has the business been established?
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4 Years
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How long has the owner had the business?
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Owner started the business.
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What steps are in place to solve "load shedding" problems
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None
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2. Present Market
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How does the business operate on a daily basis
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The business has a captured market and also does work for numerous car dealerships
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How are the clients attracted to the business
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Visitors to the centre wash their cars at the car wash while doing their shopping
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What Advertising/Marketing is carried out
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None
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Does the business have any contract work
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None at the moment, but the owner has been approached from one of the government department to wash their fleet of vehicles, they have a 10 year lease with 60 cars and are using the car wash and paying cash. This increased business will be to the benefit of the new owner.
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What competition exists
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No real competition 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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Is the business VAT Registered
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Yes
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What VAT documentation is on file?
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With accountant
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Are there up to date management accounts?
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Yearly financial available, but not on file.
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What audited financials are available, income statement and or balance sheets?
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Yearly financial available, but not on file.
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What percentage of the business is cash/credit?
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60% cash 40% EFT from dealers
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What is the age analysis of the debtor’s book?
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N/A
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How could the profitability of the business be improved?
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Marketing. Approaching the numerous dealerships in the area. The centre is expanding and a day clinic is planned in the near future as well as a Fruit and Veg City that will attract additional business to the centre.
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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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31 staff members.
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Staff Breakdown and length of service
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2 Supervisors, 30 General workers. The Owner, his wife and one other drive the cars.
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Do any receive special perks, bonuses or incentives?
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No
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Are they on contract?
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The South African workers has contracts, the Zimbabwean workers have work permits, but no contracts. 60% SA and 40% Zim, no illegal staff.
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Do any have management potential?
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Supervisors already in place
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How involved is the Owner in running the business
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Owner and his wife is actively involved in the running of the business
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5. Premises
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When does the current lease end?
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4 Years left
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Is there an option of renewal & what period
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Yes, 5 years.
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What is the annual escalation %?
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10%
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What are the trading hours?
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Mon-Fri 8am-5pm, Sat 9am-3pm, Sun + Pub Hol 9am-3pm
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What is the square meterage of the business?
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+/- 30m² Office and +/- 588 undercover working area
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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
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Are any items not included in the sale?
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No
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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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Replacement value
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Which assets are on lease/HP and with whom?
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None
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What are their settlement amounts?
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N / A
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Will Seller settle or Buyer to take over?
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N / A
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Are copies of agreements available?
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N / A
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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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Great business with a captured market
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Weaknesses
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None perceived
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Opportunities
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Business will automatically increase with the expansion of the centre. There are numerous car dealers in the area that can be approached to get their business.
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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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The owner is tired
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9. Conclusion
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Why is this a good business to buy?
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Captured market and the business is growing without any additional effort from the owner
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