MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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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.
PLEASE NOTE: THERE IS BETWEEN R30,000 AND R70,000 COMPLETED WORK IN PROGRESS THAT WILL NEED TO BE DISCUSSED AND IS NOT IN THE PRICE SHOWN !
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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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4 Years
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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 manager run. He basically visits the business twice a week to do cash ups.
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How are the clients attracted to the business
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Regular customer base and walk in business
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What Advertising/Marketing is carried out
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No marketing is being done
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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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There are no other dry cleaning businesses in the area. There is a Laundromat a few kilometres away.
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What are the seasonal trends
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Winter is the peak season
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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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Yes
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What audited financials are available, income statement and or balance sheets?
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Only management accounts
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What percentage of the business is cash/credit?
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Only Cash
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What is the age analysis of the debtor’s book?
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N/A
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How could the profitability of the business be improved?
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By offering laundry facilities. There is sufficient space in the shop to add a few washing and tumble drying machines.
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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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Manager and 4 other staff members (Some of the other staff have experience and potential to stand in for the manager)
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Staff Breakdown and length of service
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Manager runs the business and the other workers takes care of the routine work
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Do any receive special perks, bonuses or incentives?
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Small performance bonus
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Are they on contract?
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Yes, manager is on a month to month contract
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Do any have management potential?
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Yes
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How involved is the Owner in running the business
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Owner is not actively involved in the running of the business.
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5. Premises
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When does the current lease end?
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Month to Month
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Is there an option of renewal & what period
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Yes, to be negotiated but the landlord seems to like 3 years
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What is the annual escalation %?
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Landlord wants 10% but the seller achieved 8% previously
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What are the trading hours?
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Mon-Fri 8:30am – 6pm, Sat 8.30am – 1pm, Sun closed
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What is the square meterage of the business?
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60m²
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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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Assets listed below
Dry Cleaning Machine - R300,000
Press - R5,000
Washing Machine X2 - R6,000
Tumble Dry - R1,000
Tumble Dry - R2,000
Cobbler - R5,000
Sewing Machine - R2,000
Till - R1,000
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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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Good
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Do any require repairing?
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Problem with the Dry Cleaning machine currently is being fixed
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How have they been valued?
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Seller valuation
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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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Yes
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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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Established business with great equipment.
Great centre
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Weaknesses
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Lack of owner involvement and no marketing
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Opportunities
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To introduce laundry facilities
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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 lives far from the business and he has other interests to pursue
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9. Conclusion
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Why is this a good business to buy?
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Well established business located in a very busy mall.
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