MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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The fitment centre does tyre, shocks and services. Cars and trucks alike from a location on a busy main road in the South of Johannesburg and in a light industrial area. Owner not present but busy with his transport business. Owner involvement will make a difference.
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How long has the business been established?
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Since 2011.
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How long has the owner had the business?
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Started it
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What steps are in place to solve "load shedding" problems
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N/A
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2. Present Market
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How does the business operate on a daily basis
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For the last 2 year limited owner involvement with staff running it
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How are the clients attracted to the business
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On a main road, word of mouth, established clients (commercial truck etc) and advertising and promotions.
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What Advertising/Marketing is carried out
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They did a lot initially but nothing now
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Does the business have any contract work
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Various regular business clients
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What competition exists
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Various normal competitors as per the industry in the area
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What are the seasonal trends
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Busy week trade, quiet weekends, due to location in industrial area.
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3. Financial
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Is the business VAT registered?
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Yes
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What VAT documentation is on
file?
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Yes
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Are there up to date Management
Accounts available?
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Everything available in POS from inception
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Balance Sheet and Income
Statements?
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Not up to date and you not buying the CC that has other business activities in it.
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What Percentage of the business
is cash/credit card/credit?
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10% is on 30days, a lot by card and EFT, some cash
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Age Analysis?
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30days for about 10% of turnover per month
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How can it be more profitable?
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Owner involvement, more marketing especially to two major office blocks in the area
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Seller Finance available?
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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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10 staff
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Staff Breakdown and length of service
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2 Manager/Sales, 1 admin, 1 cleaner, 5 floor staff and 1 driver
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Do any receive special perks, bonuses or incentives?
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None
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Are they on contract?
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Yes, MIBCO
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Do any have management potential?
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Yes, in place
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How involved is the Owner in running the business
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Not involved and that will make a big difference
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5. Premises
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When does the current lease end?
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Lease just resigned for 3 years.
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Is there an option of renewal & what period
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Yes.
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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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Mon - Fri 08:00 - 17:30,
Sat 08:00 - 15:00
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What is the square meterage of the business?
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300m2
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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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Franchise Agreement Required
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6. Assets
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Is a full asset list on file?
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Yes
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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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Normal on-going maintenance, the Ford Ranger might need a bit of work
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How have they been valued?
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Replacement by owner
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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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Good franchise, good location.
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Weaknesses
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Owner involvement
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Opportunities
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Focus hands on and market the services
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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 has another business he is focusing.
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9. Conclusion
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Why is this a good business to buy?
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Franchise well-known, location on busy road.
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