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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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This office park coffee shop is open for 4 months in a NEW office Park. They serve breakfast and lunch. They offer free Wifi to the patrons. The turnover is nicely up as the park with 160 offices now having 250 people in it. With the park projecting some 650 people during next year in it the growth look exciting. They ultimately expect 800 people in it. A liquor license is also applied for by the landlord and when that kicks in you can become the favourite watering hole as well after work. This is opportunity knocking!
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How long has the business been established?
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4 months
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How long has the owner had the business?
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4 months.
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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 currently. He manages till, management and orders.
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How are the clients attracted to the business
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Captive audience.
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What Advertising/Marketing is carried out
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Specials and promotions now. He emails some 67 people in the park the lunch time specials, but nothing else.
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Does the business have any contract work
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No. They have received some catering requests from the people in the park.
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What competition exists
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None, captive audience.
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What are the seasonal trends
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Open too short to determine anything, but obviously Christmas period is quiet, and they will be closed as a result as well.
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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, spreadsheets
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What audited financials are available, income statement and or balance sheets?
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Nothing yet.
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What percentage of the business is cash/credit?
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4 accounts, 50% Cash rest is C/C
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What is the age analysis of the debtor’s book?
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Paid at end of the month
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How could the profitability of the business be improved?
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Cater for businesses, precooked meals for people to take home, go to the offices with snacks and trays with food daily, the park will fill up, the liquor license will have a big impact.
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Is Seller finance available and for what amount?
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No, urgent cash sale
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4. Staffing
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What is the total staff complement?
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2 staff.
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Staff Breakdown and length of service
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1 Temp, 1 Permanent. They are kitchen staff/waitresses. A trained barista will be an asset.
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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 new owner can negotiate with the landlord and enter into an agreement of 1 year or 2 years.
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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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See above
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What are the trading hours?
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Mon – Fri 07:30-16:00
Closing 20 December to 5 January
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What is the square meterage of the business?
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76m2 . Currently configured as a 26 seater, but driven as a takeout and eat in the office business
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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. The landlord has applied for a liquor license
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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/printer 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.
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7. S.W.O.T. Analysis
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Strengths
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Nice position, Very low overheads. Captive audience a big strenght
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Weaknesses
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A bit small, park still not full
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Opportunities
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Huge growth as park fills up, extra services can be provided and the business has huge growth potential. You can become the watering hole after work if wanted, the setup will also allow for wine or beer appreciation evening themes
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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 has another business taking off fast demanding all his time.
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9. Conclusion
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Why is this a good business to buy?
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An opportunity for the right buyer.
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