|
MANDATE REPORT
|
|
1. History Background
|
|
Fully describe the business's activities
|
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.
|
|
How long has the business been established?
|
Since 2011.
|
|
How long has the owner had the business?
|
Started it
|
|
What steps are in place to solve "load shedding" problems
|
N/A
|
|
2. Present Market
|
|
How does the business operate on a daily basis
|
For the last 2 year limited owner involvement with staff running it
|
|
How are the clients attracted to the business
|
On a main road, word of mouth, established clients (commercial truck etc) and advertising and promotions.
|
|
What Advertising/Marketing is carried out
|
They did a lot initially but nothing now
|
|
Does the business have any contract work
|
Various regular business clients
|
|
What competition exists
|
Various normal competitors as per the industry in the area
|
|
What are the seasonal trends
|
Busy week trade, quiet weekends, due to location in industrial area.
|
|
3. Financial
|
|
Is the business VAT registered?
|
Yes
|
|
What VAT documentation is on
file?
|
Yes
|
|
Are there up to date Management
Accounts available?
|
Everything available in POS from inception
|
|
Balance Sheet and Income
Statements?
|
Not up to date and you not buying the CC that has other business activities in it.
|
|
What Percentage of the business
is cash/credit card/credit?
|
10% is on 30days, a lot by card and EFT, some cash
|
|
Age Analysis?
|
30days for about 10% of turnover per month
|
|
How can it be more profitable?
|
Owner involvement, more marketing especially to two major office blocks in the area
|
|
Seller Finance available?
|
No
|
|
4. Staffing
|
|
What is the total staff complement?
|
10 staff
|
|
Staff Breakdown and length of service
|
2 Manager/Sales, 1 admin, 1 cleaner, 5 floor staff and 1 driver
|
|
Do any receive special perks, bonuses or incentives?
|
None
|
|
Are they on contract?
|
Yes, MIBCO
|
|
Do any have management potential?
|
Yes, in place
|
|
How involved is the Owner in running the business
|
Not involved and that will make a big difference
|
|
5. Premises
|
|
When does the current lease end?
|
Lease just resigned for 3 years.
|
|
Is there an option of renewal & what period
|
Yes.
|
|
What is the annual escalation %?
|
N/A
|
|
What are the trading hours?
|
Mon - Fri 08:00 - 17:30,
Sat 08:00 - 15:00
|
|
What is the square meterage of the business?
|
300m2
|
|
Is a copy of the lease available?
|
Yes
|
|
Do you require a licence?
|
Franchise Agreement Required
|
|
6. Assets
|
|
Is a full asset list on file?
|
Yes
|
|
Are any items not included in the sale?
|
No
|
|
What is their overall condition?
|
Good
|
|
Do any require repairing?
|
Normal on-going maintenance, the Ford Ranger might need a bit of work
|
|
How have they been valued?
|
Replacement by owner
|
|
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
|
Good franchise, good location.
|
|
Weaknesses
|
Owner involvement
|
|
Opportunities
|
Focus hands on and market the services
|
|
Threats
|
None Perceived
|
|
8 Reason For Sale
|
|
What is the reason for the sale?
|
Owner has another business he is focusing.
|
|
9. Conclusion
|
|
Why is this a good business to buy?
|
Franchise well-known, location on busy road.
|