MANDATE REPORT

1. History Background

Fully describe the business's activities

Car wash and valet centre

How long has the business been established?

5 years

How long has the owner had the business?

3 Years

2. Present Market

How does the business operate on  a daily basis

Owner runs the business hands on daily

How are the clients attracted to the business

Word of mouth, passing traffic

What Advertising/Marketing is carried out

None

Does the business have any contract work

No, but there are some corporate clients that make use of the business

What competition exists

The normal

What are the seasonal trends

Busier in the dry winter months

3. Financial

Is the business VAT Registered

No

What VAT documentation is on file?

N/A

Are there up to date management accounts?

Yes

What audited financials are available, income statement and or balance sheets?

Management accounts only

What percentage of the business is cash/credit?

100% Cash

What is the age analysis of the debtor’s book?

Current

How could the profitability of the business be improved?

More marketing and advertising, approach local dealerships to do their valets

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

16 Staff

Staff Breakdown and length of service

Wash Bay x7

Drying x9

Do any receive special perks, bonuses or incentives?

No

Are they on contract?

Some staff have

Do any have management potential?

No

How involved  is the Owner in running the business

100%

5. Premises

When does the current lease end?

June 2016

Is there an option of renewal & what period

Yes, 3 years

What is the annual escalation %?

8%

What are the trading hours?

Mon-Sun 7:30am to 5:00pm

What is the square meterage of the business?

Mon-Sun 7:30am to 5:00pm

Is a copy of the lease available?

Yes

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Seller will draw up

Are any items not included in the sale?

No

What is their overall condition?

Good

Do any require repairing?

Ongoing maintenance and repairs are performed

How have they been valued?

Owner valuation

Which assets are on lease/HP and with whom?

None

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?

Yes

7. S.W.O.T. Analysis

Strengths

Well trained staff

Great position with a good mix of clients

Weaknesses

Not enough marketing and advertising

Opportunities

Market the business among the local dealerships for their valets

Approach the local businesses

Threats

None identified

8. Reason For Sale

What is the reason for the sale?

The seller is tired

9. Conclusion

Why is this a good business to buy?

Well established business with a great position, well trained staff and great opportunities to expand the business among the local dealerships.