MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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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.
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How long has the business been established?
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10 years
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How long has the owner had the business?
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10 years
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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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Manager and owner run.
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How are the clients attracted to the business
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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
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What Advertising/Marketing is carried out
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The Franchisor carries out TV and Radio adverts and the business distribute some flyers with specials in the area
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Does the business have any contract work
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Car dealers, freight and logistics companies use them
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What competition exists
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Normal competition and spread for the area
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What are the seasonal trends
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Quiet in January, busy in April, December and January
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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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Normal returns up to date
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Are there up to date Management Accounts available?
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Financials are available
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Balance Sheet and Income Statements?
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March 2013
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What Percentage of the business is cash/credit card/credit?
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60% is cash/credit card and 40% on credit
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Age Analysis?
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30 days from statement
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How can it be more profitable
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Growth via rep on the road to corporate clients. Current owner not marketing like that
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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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13 staff
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Staff Breakdown and length of service
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1 manager, 1 salesman, 4 tyre fitters, 2 exhaust fitters,3 suspension/alignment and 2 admin
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Do any receive special perks, bonuses or incentives?
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Salesman 1% of TO
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Are they on contract?
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Yes
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Do any have management potential?
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Yes, one in place
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How involved is the Owner in running the business
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Still hands on but a lot less due to health issues
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4. Premises
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When does the current lease end?
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Seller is building owner and will give a new lease.
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Is there an option of renewal & what period
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N/A
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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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Mo-Fri 07:30-17:00
Sat 07:30-13:00
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What is the square meterage of the business?
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Is a copy of the lease available?
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N/A
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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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Will be provided
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Are any items not included in the sale?
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Only small personal items
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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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No
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How have they been valued?
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Replacement
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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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4. S.W.O.T. Analysis
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Strengths
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Nice large proper building and easy access. Good franchise
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Weaknesses
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None perceived
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Opportunities
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Growth into more corporate clients
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Threats
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None perceived
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What is the reason for the sale?
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Health is ailing and owner wants a change in his life
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Why is this a good business to buy?
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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.
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