MANDATE REPORT

1. History Background

Fully describe the business's activities

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. 

How long has the business been established?

14 Years

How long has the owner had the business?

The current owner bought the business in 2008

2. Present Market

How does the business operate on  a daily basis

Owner is actively involved in the running of the business.

How are the clients attracted to the business

Regular customer base and passing trade

What Advertising/Marketing is carried out

Very little

Does the business have any contract work

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.

What competition exists

None in close proximity

What are the seasonal trends

None perceived

3. Financial

Are there up to date management accounts?

Yes, the owner has a sales book of al sales

What percentage of the business is cash/credit?

Mostly cash

How could the profitability of the business be improved?

More marketing. The Pretoria Zoo has approached the business to supply them with business. These leads must be pursued further

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

Owner and 3 workers

How involved  is the Owner in running the business

Owner is actively involved in the running of the business

5. Premises

When does the current lease end?

May 2013

Is there an option of renewal & what period

Yes, to be negotiated

What are the trading hours?

Mon-Fri 8am – 6pm, Sat 8am – 14:30pm

What is the square meterage of the business?

64m2

Is a copy of the lease available?

Yes

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Yes available and prepared for fair market value

Are any items not included in the sale?

Yes, a few personal items such as a desk

What is their overall condition?

Excellent

Do any require repairing?

There is a fridge that needs gas, however this fridge is not included in the asset register, but is part of the sale

How have they been valued?

Fair market / Replacement value.

Which assets are on lease/HP and with whom?

N / A

What are their settlement amounts?

N / A

Will Seller settle or Buyer to take over?

N / A

Are copies of agreements available?

N / A

7. S.W.O.T. Analysis

Strengths

Well known, well established business with capable staff

Weaknesses

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.

Opportunities

The business needs attention. This will bring the business back to its original position where people travelled from afar to come and buy biltong

Threats

None perceived

8. Reason For Sale

What is the reason for the sale?

Owner is getting divorced and wants to move to Jeffreys Bay.

9. Conclusion

Why is this good business to buy?

Established business with a great track record. It needs a bit of attention to get it back to its former glory