MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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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.
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How long has the business been established?
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1 year and 4 months.
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How long has the owner had the business?
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The current owner started the business.
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What steps are in place to solve "load shedding" problems
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N/A
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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 is owner run.
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How are the clients attracted to the business
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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.
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What Advertising/Marketing is carried out
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Pamphlets in post boxes and placards.
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Does the business have any contract work
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The clients are monthly in advance.
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What competition exists
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Normal competition for Garden services.
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What are the seasonal trends
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It is a bit quieter in the winter.
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3. Financial
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Is the business VAT Registered
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No
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What VAT documentation is on file?
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N/A
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Are there up to date management accounts?
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Seller will supply
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What audited financials are available, income statement and or balance sheets?
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N/A
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What percentage of the business is cash/credit?
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50% Cash
50% EFT
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What is the age analysis of the debtor’s book?
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None
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How could the profitability of the business be improved?
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More gardens, add pools to the mix, instant lawn, paving, tree felling, etc.
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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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4 staff members.
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Staff Breakdown and length of service
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Each staff member can perform all the garden functions in the business
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Do any receive special perks, bonuses or incentives?
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No, the staff are casual paid weekly
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Are they on contract?
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No
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Do any have management potential?
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Yes, one of the staff members does, the seller will discuss.
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How involved is the Owner in running the business
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100%
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5. Premises
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When does the current lease end?
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N/A
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Is there an option of renewal & what period
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N/A
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What is the annual escalation %?
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N/A
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What are the trading hours?
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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.
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What is the square meterage of the business?
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N/A
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Is a copy of the lease available?
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N/A
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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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Seller will provide, but it basically consists of
- Trailer
- 2 x Mowers
- 2 x Weed eaters
- Spades, Rakes, etc.
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Are any items not included in the sale?
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All the items that will be on the asset list are part of the business.
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What is their overall condition?
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Good to New
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Do any require repairing?
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On-going maintenance is performed.
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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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N/A
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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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No
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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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Good customer relations
Deliver a good quality job
Handle special requests very well
Well trained staff
Clients pay in advance
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Weaknesses
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No weakness identified
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Opportunities
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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.
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Threats
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None identified
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8. Reason For Sale
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What is the reason for the sale?
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For medical reasons.
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9. Conclusion
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Why is this a good business to buy?
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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.
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