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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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A health and beauty business with modern equipment in Johannesburg North is for sale. The business specialises in new revolutionary centimetre loss treatment using ultrasound technology. You will be trained and get the state of the art equipment in a custom built centre in a discreet small office development just of a main road, easy access for you clients, private enough for celebs. The business use ultrasonic technology for non-invasive lipo-therapy. The two owners do all the treatments.
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How long has the business been established?
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2 Years
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How long has the owner had the business?
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2 years.
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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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Owner operated in by two partners that treats all the clients and handles everything
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How are the clients attracted to the business
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Word of mouth, promotions i.e. Groupon, regular clients frequents the business
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What Advertising/Marketing is carried out
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Specials from time to time, promotions, advertising in local newpapers.
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Does the business have any contract work
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No contracts, but regular clients that lose weight, follow clients and have a range and repeat treatments.
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What competition exists
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Normal competition but they have a unique offering in the area.
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What are the seasonal trends
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Inter months are slower but promotions assist with that
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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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Yes
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What audited financials are available, income statement and or balance sheets?
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Trail Balance for 28 February 2013 .
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What percentage of the business is cash/credit?
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No Credit, 20% Cash rest is EFT or C/C
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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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They have 3 cubicles, 2 is for Ultrasonic Lipo, 1 for IPL. You can easily do facials, nails and massages as well.
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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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2 Partners only, no staff.
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Staff Breakdown and length of service
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N/A
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Do any receive special perks, bonuses or incentives?
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N/A
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Are they on contract?
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N/A
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Do any have management potential?
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N/A.
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How involved is the Owner in running the business
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Owners operated currently.
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5. Premises
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When does the current lease end?
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The one seller’s husband owns the premises and will gladly provide the new owner with a lease that suits them, ie 3 years. Note that the current lease agreement (that will also be available to the new owner) allow the usage of the reception for this business, that also include, tea/coffee for clients and cleaning of the business. This includes parking, 24 hour security and 24x7 internet.
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Is there an option of renewal & what period
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See above
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What is the annual escalation %?
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What are the trading hours?
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Mon – Fri 08:00-17:00
Sat 08:00 – 13:00
Close
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What is the square meterage of the business?
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36m2 .
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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 owner to provide
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Are any items not included in the sale?
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Personal laptop of seller
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What is their overall condition?
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Good.
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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
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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. They current owners also have special public liability insurance.
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7. S.W.O.T. Analysis
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Strengths
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Nice position, Very low overheads.
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Weaknesses
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A bit small
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Opportunities
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Secure more contracts.
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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 cannot continue due to Health Reasons.
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9. Conclusion
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Why is this a good business to buy?
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An opportunity to help change people’s lives with an exciting business. This is for someone with energy and passion and that can add extra services to the business.
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