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MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Grounds Care Business with 7 long term contracts looking after security complexes and estates. This includes the basic gardening and additional services like dustbin cleaning, tree felling, etc.
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How long has the business been established?
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12 Years
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How long has the owner had the business?
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One year
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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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Owner run
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How are the clients attracted to the business
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Word of mouth and franchisor referrals
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What Advertising/Marketing is carried out
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None
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Does the business have any contract work
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Yes all the clients are on contract up to two years long.
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What competition exists
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The normal for the industry
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What are the seasonal trends
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There are no seasonal variations as the clients are on contract.
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3. Financial
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Is the business VAT Registered
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No
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What VAT documentation is on file?
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N/A |
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Are there up to date management accounts?
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Yes,
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What audited financials are available, income statement and or balance sheets?
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Yes.
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What percentage of the business is cash/credit?
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All EFT
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What is the age analysis of the debtor’s book?
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A cash business. No debtor’s book.
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How could the profitability of the business be improved?
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Some clients pay monthly in advance and some monthly in arrears, but there are no overdue accounts.
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Is Seller finance available and for what amount?
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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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16 staff members are currently employed
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Staff Breakdown and length of service
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1 x Driver
15 x General workers |
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Do any receive special perks, bonuses or incentives?
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No
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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
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How involved is the Owner in running the business
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The current owner is handson.
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5. Premises
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When does the current lease end?
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N/A
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Is there an option of renewal & what
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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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Mon-Fri 8am to 4pm
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What is the square meterage of the business?
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N/A
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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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Yes
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Are any items not included in the sale?
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The GWM Bakkie is NOT included in the sale (The Chana bakkie is included and has a settlement of around R50,000 on it to be taken over by the purchaser)
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What is their overall condition?
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Serviceable and well maintained
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Do any require repairing?
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Ongoing repairs are made as the franchisor has a mechanic that services and repairs all the machinery.
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How have they been valued?
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Replacement value, valued by the owner
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Which assets are on lease/HP and with whom?
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The Chana bakkie is on lease and the buyer to settle or refinance under their name.
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What are their settlement amounts?
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Seller will provide, but monthly installment is in expenses
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Will Seller settle or Buyer to take over?
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Buyer to take over the Chana, settlement amount is around R50,000.
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Are copies of agreements available?
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From Seller
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Are they presently insured?
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Yes the vehicle not the equipment
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7. S.W.O.T. Analysis
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Strengths
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Very well established franchised business
All clients on long term contracts
Admin and maintenance handled by franchisor
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Weaknesses
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None identified
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Opportunities
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Additional services such as tree felling, irrigation, landscaping, topsoil and compost, also the potential to remove household waste.
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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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Lack of owner involvement. He has other business in another part of the city making this impractical to keep.
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