MANDATE REPORT

1. History Background

Fully describe the business's activities

This garden service business has 27 full time gardens that pay monthly in advance. In addition the business supplies and installs instant lawn, does some small paving jobs and facilitates tree felling contracts for a commission. Garden cleaning jobs are another additional revenue source.

How long has the business been established?

1 year and 4 months.

How long has the owner had the business?

The current owner started the business.

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 business is owner run.

How are the clients attracted to the business

Word of mouth, pamphlets in te houses surrounding existing clients which helps to build the client base around each other and therefore cuts down the travelling.

What Advertising/Marketing is carried out

Pamphlets in post boxes and placards.

Does the business have any contract work

The clients are monthly in advance.

What competition exists

Normal competition for Garden services.

What are the seasonal trends

It is a bit quieter in the winter.

3. Financial

Is the business VAT Registered

No

What VAT documentation is on file?

N/A

Are there up to date management accounts?

Seller will supply

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

N/A

What percentage of the business is cash/credit?

50% Cash

50% EFT

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

None

How could the profitability of the business be improved?

More gardens, add pools to the mix, instant lawn, paving, tree felling, etc.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

4 staff members.

Staff Breakdown and length of service

Each staff member can perform all the garden functions in the business

Do any receive special perks, bonuses or incentives?

No, the staff are casual paid weekly

Are they on contract?

No

Do any have management potential?

Yes, one of the staff members does, the seller will discuss.

How involved  is the Owner in running the business

100%

5. Premises

When does the current lease end?

N/A

Is there an option of renewal & what period

N/A

What is the annual escalation %?

N/A

What are the trading hours?

Mon-Fri 8am-5pm, currently Tuesday’s is an off day or spare day that can be used to catch up as well if needed.

What is the square meterage of the business?

N/A

Is a copy of the lease available?

N/A

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Seller will provide, but it basically consists of

-      Trailer

-      2 x Mowers

-      2 x Weed eaters

-      Spades, Rakes, etc.

-     

Are any items not included in the sale?

All the items that will be on the asset list are part of the business.

What is their overall condition?

Good to New

Do any require repairing?

On-going maintenance is performed.

How have they been valued?

Replacement value.

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?

No

7. S.W.O.T. Analysis

Strengths

Good customer relations

Deliver a good quality job

Handle special requests very well

Well trained staff

Clients pay in advance

Weaknesses

No weakness identified

Opportunities

Potential growth available in number of clients as well as to expand into allied activities such as pool maintenance, Tree felling, rubbish removal, paving, etc.

Threats

None identified

8. Reason For Sale

What is the reason for the sale?

For medical reasons.

9. Conclusion

Why is this a good business to buy?

This is a great small Garden service at a very reasonable price that can be grown into a much larger business quite easily, there is a lot of spare capacity within the existing team.