|
MANDATE REPORT
|
|
1. History Background
|
|
Fully describe the business's activities
|
This filling station with a car wash and convenience store is located in a very busy road in Pretoria. This station pumps about 100,000 litres on average with 20 nozzles supplying ULP93, ULP 95, LRP and Diesel and has been upgraded to the latest pumps. There is a Convenience store as well as car wash. The Income mix is well balanced. Turnovers in the Shop is R210,000 while airtime forms a very small part of that. Rental includes the city council fees. At new municipal meter were installed now and the owner foresees a lower city council bill. This station is not one of the traditional brands that increase revenue by R0.50 cent per litre to you the operator. With a hands on operator and the position of the station you should be able to grow it substantially.
|
|
How long has the business been established?
|
A few years but in current format since 2012
|
|
How long has the owner had the business?
|
Since 2012
|
|
2. Present Market
|
|
How does the business operate on a daily basis
|
Clients enjoy the buzzing atmosphere, quality food, dishes variety and flavours. Service levels are excellent. The business caters for private functions, business meetings, tea parties and birthdays.
|
|
How are the clients attracted to the business
|
This station is located on a very busy road with lots of businesses in the area.
|
|
What Advertising/Marketing is carried out
|
None by the owner, but do the brand advertise on national Television.
|
|
Does the business have any contract work
|
No, this is a cash operated business
|
|
What competition exists
|
The normal for these type of businesses
|
|
What are the seasonal trends
|
The same throughout the year.
|
|
3. Financial
|
|
Is the business VAT Registered
|
Yes
|
|
What VAT documentation is on file?
|
Yes
|
|
Are there up to date management accounts?
|
Management statements until Nov 2014
|
|
What audited financials are available, income statement and or balance sheets?
|
The owner will make it available for serious buyers.
|
|
What is the age analysis of the debtor’s book?
|
A cash business. No debtor’s book.
|
|
How could the profitability of the business be improved?
|
More aggressive marketing, hands-on focus, service levels
|
|
Is Seller finance available and for what amount?
|
No
|
|
4. Staffing
|
|
What is the total staff complement?
|
Total staff=10
|
|
Staff Breakdown and length of service
|
2 Cashiers, The rest are in the forecourt
|
|
Do any receive special perks, bonuses or incentives?
|
No
|
|
Are they on contract?
|
Yes
|
|
Do any have management potential?
|
No. A new manager have to be appointed
|
|
How involved is the Owner in running the business
|
The owner and his son manage the business but both part time only
|
|
5. Premises
|
|
When does the current lease end?
|
The current lease will expire in 2017 with Option of renewal
|
|
Is there an option of renewal & what period
|
Yes.
|
|
What is the annual escalation %?
|
5%
|
|
What are the trading hours?
|
24 hour service station |
|
What is the square meterage of the business?
|
+/-100 Sqm Shop.
|
|
Is a copy of the lease available?
|
Yes
|
|
Do you require a licence?
|
DME License
|
|
6. Assets
|
|
Is a full asset list on file?
|
Yes
|
|
Are any items not included in the sale?
|
Yes, All assets are included in sale.
|
|
What is their overall condition?
|
Good
|
|
Do any require repairing?
|
Ongoing repairs and maintenance
|
|
How have they been valued?
|
Replacement value, valued by the owner
|
|
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 they presently insured?
|
Yes
|
|
7. S.W.O.T. Analysis
|
|
Strengths
|
The location of the station with respect to the main road and sandwiched between business and residential areas.
|
|
Weaknesses
|
With more hands on management approach this business will really grow
|
|
Opportunities
|
This station can be more profitable with a hands on operator
|
|
Threats
|
None perceived
|
|
8. Reason For Sale
|
|
What is the reason for the sale?
|
Owner diversifying and requires time to focus on new ventures. He also has a competing branded station. The brand holder agreement does not allow the owner to have another competing brand.
|
|
9. Conclusion
|
|
Why is this a good business to buy?
|
This business shows good profits. It is located in a very busy location. With good hands on management this will grow
|