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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 work from home opportunity is presenting itself to the right buyer. The seller has developed a unique magazine concept and turned it into a product that is proving to be very well popular with the clients of the business. It has already spawned a new magazine to cater for another market segment. The growth potential of the business is unlimited as the concept can be rolled out to every town in the country either by the buyer or even potentially be franchised.
All the hard work has been done and the Name has been registered as a Trade Mark, a Web Site is up and running, proper agreements and invoice books are in place and in use, and best of all there is already an established client base.
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How long has the business been established?
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1 Year
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How long has the owner had the business?
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1 Year
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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.
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How are the clients attracted to the business
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Word of mouth, the owner does the cold calling up to
now and has also utilised reps to do the calling.
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What Advertising/Marketing is carried out
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Only the owners calling on clients and the magazine itself.
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Does the business have any contract work
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No, but there is an existing list of previous clients.
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What competition exists
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None
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What are the seasonal trends
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The magazine is published toward the end of the year for distribution early in the new year so February to December are the sales months with publishing and distribution in January.
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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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No
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What audited financials are available, income statement and or balance sheets?
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None, there however the magazine itself and invoice books showing all previous sales for confirmation.
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What percentage of the business is cash/credit?
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Cash and terms
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What is the age analysis of the debtor’s book?
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Depends on how the clients elect to pay, obviously if they don’t pay the full amount they aren’t published.
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How could the profitability of the business be improved?
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Already in progress with a the second magazine and opening of the Pretoria area.
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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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None, the buyer can employ has many reps as they deem necessary to achieve the required sales.
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Staff Breakdown and length of service
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N/A
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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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Owner Managed.
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5. Premises
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When does the current lease end?
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Work from home.
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Is there an option of renewal & what period
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N/A
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What is the annual escalation %?
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N/A
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What are the trading hours?
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N/A
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What is the square meterage of the business?
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N/A
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Is a copy of the lease available?
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N/A
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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
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Are any items not included in the sale?
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N/A
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What is their overall condition?
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N/A
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Do any require repairing?
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N/A
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How have they been valued?
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N/A
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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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N/A
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7. S.W.O.T. Analysis
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Strengths
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Great concept with excellent market acceptance and already proven itself to be profitable.
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Weaknesses
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Non identified.
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Opportunities
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Grow the current magazine with the Johannesburg area and then also Pretoria, after that any other selected towns. Grow the second magazine in both the Johannesburg and Pretoria areas and after that any other selected town.
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Threats
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None identified
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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 other opportunities they wish to explore and will use the capital raised for that.
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9. Conclusion
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Why is this a good business to buy?
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Great business in it’s early phases with fantastic opportunity to expand and grow.
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