MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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Well established, well known, well located biltong manufacturer and shop for sale. Their biltong recipe is award winning. The business name and web site is not part of the sale. The owner is moving to Jeffreys Bay and wants to manufacture biltong there.
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How long has the business been established?
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14 Years
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How long has the owner had the business?
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The current owner bought the business in 2008
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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 is actively involved in the running of the business.
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How are the clients attracted to the business
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Regular customer base and passing trade
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What Advertising/Marketing is carried out
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Very little
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Does the business have any contract work
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No. In the past the business supplied biltong to 13 bars, this has reduced to only one. Picking up these previous orders will not be difficult.
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What competition exists
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None in close proximity
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What are the seasonal trends
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None perceived
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3. Financial
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Are there up to date management accounts?
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Yes, the owner has a sales book of al sales
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What percentage of the business is cash/credit?
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Mostly cash
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How could the profitability of the business be improved?
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More marketing. The Pretoria Zoo has approached the business to supply them with business. These leads must be pursued further
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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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Owner and 3 workers
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How involved is the Owner in running the business
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Owner is actively involved in the running of the business
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5. Premises
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When does the current lease end?
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May 2013
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Is there an option of renewal & what period
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Yes, to be negotiated
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What are the trading hours?
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Mon-Fri 8am – 6pm, Sat 8am – 14:30pm
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What is the square meterage of the business?
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64m2
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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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No
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6. Assets
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Is a full asset list on file?
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Yes available and prepared for fair market value
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Are any items not included in the sale?
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Yes, a few personal items such as a desk
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What is their overall condition?
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Excellent
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Do any require repairing?
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There is a fridge that needs gas, however this fridge is not included in the asset register, but is part of the sale
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How have they been valued?
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Fair market / Replacement value.
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Which assets are on lease/HP and with whom?
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N / A
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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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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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Well known, well established business with capable staff
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Weaknesses
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The owner is going through a divorce and this is affecting him as owner of the business. The turnover has dropped from the previous levels, but will easily be picked up again.
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Opportunities
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The business needs attention. This will bring the business back to its original position where people travelled from afar to come and buy biltong
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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 is getting divorced and wants to move to Jeffreys Bay.
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9. Conclusion
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Why is this good business to buy?
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Established business with a great track record. It needs a bit of attention to get it back to its former glory
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