MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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30 Year old Dry Cleaning Depot for sale. The business has a database of +- 27 regular commercial customers and is not reliant on walk in business. The business also has 2 collection points / shops. Take note that there is a problem with the electricity account. The account is basically for the whole centre and not only for this business. Owner is sorting out the problem. This will definitely impact on the profitability of the business
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How long has the business been established?
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30 Years
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How long has the owner had the business?
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The current owner bought the business 2 years ago
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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 run by a manager and capable staff
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How are the clients attracted to the business
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Regular customer base
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What Advertising/Marketing is carried out
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Very little marketing being done. The owner visits potential customers from time to time
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Does the business have any contract work
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No
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What competition exists
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True dry cleaners are becoming less and less. There are many Laundromats around, but most of them does not do their own dry cleaning. They are reliant on dry cleaning depots such as this one.
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What are the seasonal trends
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Winter months are busier than summer months
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3. Financial
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Are there up to date management accounts?
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Yes
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What percentage of the business is cash/credit?
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90% Of the business is cash. One or two customers pay EFT
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How could the profitability of the business be improved?
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More marketing and appointing a sales rep
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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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13
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How involved is the Owner in running the business
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Owner’s time is split between this business and his other dry cleaning business in the East Rand
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5. Premises
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When does the current lease end?
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End 2013
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Is there an option of renewal & what period
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Yes, to be negotiated
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What are the trading hours?
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Mon-Fri 8am – 5pm / or when finished, Sat 8am – 12pm. Sun, Pub holidays and period between Christmas and New Years closed
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What is the square meterage of the business?
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+- 100m2
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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 available and prepared for fair market value. Assets include a 2010 CAM bakkie
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Are any items not included in the sale?
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No
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What is their overall condition?
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Fair
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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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Fair market / 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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Business has been established for 30 years
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Weaknesses
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Not enough marketing
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Opportunities
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The business needs a owner that will be more actively involved and has a vision of where the business must go
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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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Owner wants to focus on his other business
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9. Conclusion
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Why is this good business to buy?
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Well established business with great potential
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