MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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This business produces Ozonated water they sell to the public. This is a fast growing industry. The water used is normal water that they put through an ozonation process and bottle in different sized bottles in store. All products are sold over the counter. With a good three year track record this is a stable business with very little seasonal trends as people need to drink water all the time. With very little marketing done currently and limited owner involvement the opportunity exists for a new owner to grow the business.
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How long has the business been established?
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3 years in the current premises.
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How long has the owner had the business?
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The owner owns the business for the last 3 years.
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What steps are in place to solve "load shedding" problems
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There is no backup generator on premises. Load shedding has never occurred.
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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 only visits the store twice a week, but his father is currently managing the store.
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How are the clients attracted to the business
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Word of mouth, and are known in the area for 3 years.
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What Advertising/Marketing is carried out
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No marketing is done. No web sites or any pamphlets. There is good potential in good local store marketing strategy.
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Does the business have any contract work
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None.
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What competition exists
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As far as the client knows none.
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What are the seasonal trends
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They are situated in a suburban area and are business slower in holiday times.
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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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No, below the threshold
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Are there up to date management accounts?
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Can be supplied on demand
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What audited financials are available, income statement and or balance sheets?
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On request
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What percentage of the business is cash/credit?
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All cash.
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What is the age analysis of the debtor’s book?
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It is a cash business.
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How could the profitability of the business be improved?
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More local store marketing
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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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1 staff member.
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Staff Breakdown and length of service
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One Staff member can manage the business on its own.
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Do any receive special perks, bonuses or incentives?
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None
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Are they on contract?
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No Family manage business.
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Do any have management potential?
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n/a
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How involved is the Owner in running the business
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Owner spends a few hours per day, 2 days per week at the store.
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5. Premises
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When does the current lease end?
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The current lease will end over 3 years.
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Is there an option of renewal & what period
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Yes there is a option for renewal
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What is the annual escalation %?
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10 %
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What are the trading hours?
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Mondays to Fridays from 9h00 to 6h00
Saturdays 9h00 to 15h00 Sunday closed
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What is the square meter age of the business?
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30m²
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Is a copy of the lease available?
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Yes on request
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Do you require a licence?
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Just a Business licence
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6. Assets
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Is a full asset list on file?
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Yes on request.
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Are any items not included in the sale?
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None. All assets are sold as is
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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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No
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How have they been valued?
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No
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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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No
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Will Seller settle or Buyer to take over?
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No
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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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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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This store is the only water supply store in the area, competition levels are low.
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Weaknesses
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Not enough marketing. With a good local store marketing plan, can this store grow?
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Opportunities
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The competition in the area is few and with a good operator with knowledge of this industry, can this business be a house hold brand. There is a lot off business trading in the area.
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Threats
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None identified
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8. Reason For Sale
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What is the reason for the sale?
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The owner works on a full time base and cannot manage the business full time
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9. Conclusion
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Why is this good business to buy?
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It is in a good location with a lot of potential. If the new owner do more local marketing and broker more deals with all supermarkets in the area, will this store give the owner a good income.
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