MANDATE REPORT

1. History Background

Fully describe the business's activities

This franchised fitment centre on the East Rand is very close to the OR Tambo airport.  It is well established for many years and well known.  Centrally located with easy access and and 10 well equipped  bays. (2 Aligment,4 Tyre, 2 Exchaust, 3 Suspension).  It can be expanded if you own the building that is also available as an optional extra.  Currently the premises is also occupied by some tenants.

How long has the business been established?

10 years

How long has the owner had the business?

10 years

What steps are in place to solve "load shedding" problems

N/A

2. Present Market

How does the business operate on  a daily basis

Manager and owner run.

How are the clients attracted to the business

Nice position that is visible and easy to reach, also the on franchise brand in the immediate area.  Word of mouth to a 10 year old established client base

What Advertising/Marketing is carried out

The Franchisor carries out TV and Radio adverts and the business distribute some flyers with specials in the area

Does the business have any contract work

Car dealers, freight and logistics companies use them

What competition exists

Normal competition and spread for the area

What are the seasonal trends

Quiet in January, busy in April, December and January

3. Financial

Is the business VAT registered?

Yes

What VAT documentation is on file?

Normal returns up to date

Are there up to date Management Accounts available?

Financials are available

Balance Sheet and Income Statements?

March 2013

What Percentage of the business is cash/credit card/credit?

60% is cash/credit card and 40% on credit

Age Analysis?

30 days from statement

How can it be more profitable

Growth via rep on the road to corporate clients.  Current owner not marketing like that

Seller Finance available?

No

4. Staffing

What is the total staff complement?

13 staff

Staff Breakdown and length of service

1 manager, 1 salesman, 4 tyre fitters, 2 exhaust fitters,3 suspension/alignment and 2 admin 

Do any receive special perks, bonuses or incentives?

Salesman 1% of TO

Are they on contract?

Yes

Do any have management potential?

Yes, one in place

How involved  is the Owner in running the business

Still hands on but a lot less due to health issues

4. Premises

When does the current lease end?

Seller is building owner and will give a new lease.

Is there an option of renewal & what period

N/A

What is the annual escalation %?

N/A

What are the trading hours?

Mo-Fri 07:30-17:00

Sat 07:30-13:00

What is the square meterage of the business?

Is a copy of the lease available?

N/A

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Will be provided

Are any items not included in the sale?

Only small personal items

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued?

Replacement

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

4. S.W.O.T. Analysis

Strengths

Nice large proper building and easy access.  Good franchise

Weaknesses

None perceived

Opportunities

Growth into more corporate clients

Threats

None perceived

What is the reason for the sale?

Health is ailing and owner wants a change in his life

Why is this a good business to buy?

This is a clean franchise in a sought after industry.  Nice and big in a bespoke building with easy access to various roads.  You can buy the building as well which will impact profitability.