MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Car wash and valet centre
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How long has the business been established?
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5 years
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How long has the owner had the business?
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3 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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Owner runs the business hands on daily
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How are the clients attracted to the business
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Word of mouth, passing traffic
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What Advertising/Marketing is carried out
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None
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Does the business have any contract work
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No, but there are some corporate clients that make use of the business
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What competition exists
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The normal
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What are the seasonal trends
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Busier in the dry winter months
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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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Management accounts only
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What percentage of the business is cash/credit?
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100% Cash
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What is the age analysis of the debtor’s book?
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Current
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How could the profitability of the business be improved?
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More marketing and advertising, approach local dealerships to do their valets
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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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16 Staff
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Staff Breakdown and length of service
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Wash Bay x7
Drying x9
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Do any receive special perks, bonuses or incentives?
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No
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Are they on contract?
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Some staff have
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Do any have management potential?
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No
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How involved is the Owner in running the business
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100%
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5. Premises
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When does the current lease end?
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June 2016
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Is there an option of renewal & what period
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Yes, 3 years
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What is the annual escalation %?
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8%
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What are the trading hours?
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Mon-Sun 7:30am to 5:00pm
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What is the square meterage of the business?
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Mon-Sun 7:30am to 5:00pm
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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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Seller will draw up
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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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Ongoing maintenance and repairs are performed
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How have they been valued?
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Owner valuation
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Which assets are on lease/HP and with whom?
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None
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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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Well trained staff
Great position with a good mix of clients
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Weaknesses
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Not enough marketing and advertising
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Opportunities
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Market the business among the local dealerships for their valets
Approach the local businesses
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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 seller is tired
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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 with a great position, well trained staff and great opportunities to expand the business among the local dealerships.
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