MANDATE REPORT

1. History Background

Fully describe the business's activities

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

How long has the business been established?

30 Years

How long has the owner had the business?

The current owner bought the business 2 years ago

2. Present Market

How does the business operate on  a daily basis

The business is run by a manager and capable staff

How are the clients attracted to the business

Regular customer base

What Advertising/Marketing is carried out

Very little marketing being done. The owner visits potential customers from time to time

Does the business have any contract work

No

What competition exists

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.

What are the seasonal trends

Winter months are busier than summer months

3. Financial

Are there up to date management accounts?

Yes

What percentage of the business is cash/credit?

90% Of the business is cash. One or two customers pay EFT

How could the profitability of the business be improved?

More marketing and appointing a sales rep

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

13

How involved  is the Owner in running the business

Owner’s time is split between this business and his other dry cleaning business in the East Rand

5. Premises

When does the current lease end?

End 2013

Is there an option of renewal & what period

Yes, to be negotiated

What are the trading hours?

Mon-Fri 8am – 5pm / or when finished, Sat 8am – 12pm. Sun, Pub holidays and period between Christmas and New Years closed

What is the square meterage of the business?

+- 100m2

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. Assets include a 2010 CAM bakkie

Are any items not included in the sale?

No

What is their overall condition?

Fair

Do any require repairing?

No

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?

No

7. S.W.O.T. Analysis

Strengths

Business has been established for 30 years

Weaknesses

Not enough marketing

Opportunities

The business needs a owner that will be more actively involved and has a vision of where the business must go

Threats

None perceived

8. Reason For Sale

What is the reason for the sale?

Owner wants to focus on his other business

9. Conclusion

Why is this good business to buy?

Well established business with great potential