MANDATE REPORT

1. History Background

Fully describe the business's activities

Well established Dry Cleaning business in a very busy centre for sale. The business was established more than 30 years ago and still has great potential for increased business. Over the years the business has built up a strong customer base.

How long has the business been established?

30 Years

How long has the owner had the business?

3 Years

2. Present Market

How does the business operate on  a daily basis

The business is manager run. The owner also owns another dry cleaning business in Pretoria. He basically visits the business twice a week to do cash ups.

How are the clients attracted to the business

Regular customer base and walk in business

What Advertising/Marketing is carried out

No marketing is being done

Does the business have any contract work

No

What competition exists

There are no other dry cleaning businesses in the area. There is a laundromat a few kilometres away.

What are the seasonal trends

February tends to be slower than other months

3. Financial

Are there up to date management accounts?

Yes

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

Only management accounts

What percentage of the business is cash/credit?

Mostly cash

How could the profitability of the business be improved?

By offering laundry facilities. There is sufficient space in the shop to add a few washing and tumble drying machines.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

Manager and 4 other staff members

How involved  is the Owner in running the business

Owner is not actively involved in the running of the business

5. Premises

When does the current lease end?

August 2013

Is there an option of renewal & what period

Yes, to be negotiated

What are the trading hours?

Mon-Fri 8am – 6pm, Sat 8.30am – 1pm, Sun closed

Is a copy of the lease available?

Yes

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Yes available and prepared for fair market value

Are any items not included in the sale?

No

What is their overall condition?

Excellent

Do any require repairing?

No, regular maintenance are done on the equipment

How have they been valued?

Fair market / 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?

Yes

7. S.W.O.T. Analysis

Strengths

Established business with great equipment

Weaknesses

Lack of owner involvement and no marketing

Opportunities

To introduce laundry facilities

Threats

None perceived

8. Reason For Sale

What is the reason for the sale?

Owner lives in Centurion and has to travel between the East Rand and Pretoria to his businesses. Logistically it does not make sense.

9. Conclusion

Why is this good business to buy?

Well established business located in a very busy mall.