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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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Take Away/Café on busy street in Industrial/Residential area. Normal cafe and takeaway services and pavement braai-meat for customers. Sells assortment of goods, airtime etc.
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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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6 Months.
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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 operated
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How are the clients attracted to the business
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Word of mouth, walk-in customers and well known in area.
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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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No.
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What competition exists
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Some in the area
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What are the seasonal trends
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None known of
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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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No, has not prepared any.
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What audited financials are available, income statement and or balance sheets?
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None. Due diligence will have to be done by prospective buyer.
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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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N/A
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How could the profitability of the business be improved?
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Business cash strapped and therefore under-stocked. New owner must stock up on sellable goods and promote same.
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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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2 staff members on payroll.
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Staff Breakdown and length of service
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2 Kitchen staff.
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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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Permanent employees.
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Do any have management potential?
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No
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How involved is the Owner in running the business
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Owner managed.
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5. Premises
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When does the current lease end?
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A rent of R 5,600pm all inclusive. Rent is 1 year, but new lease to be concluded with the landlord. .
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Is there an option of renewal & what period
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Yes 3 years, but new lease to be arranged
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What is the annual escalation %?
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10% current, but new lease to be created
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What are the trading hours?
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Mon-Fri 07:00 -17:00,
Sat 07:00 – 13:00
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What is the square meterage of the business?
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+-80m2
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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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Not with owner
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Are any items not included in the sale?
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The Fan, KIC Fridge and Desk Chair is not included in the sale, and will be removed. The COKE Fridge and the airtime machine is on consignment.
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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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One fridge broken.
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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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Are they presently insured?
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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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Although the current Owner has been there for a relative short period, the business was established many years ago, and is well supported with lots of potential.
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Weaknesses
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The business needs to be stocked up as vital sales are lost due to short supply.
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Opportunities
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Grow the client base, Short hours and not open on Sundays could be changed to draw more clients..
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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 wants to follow other interests. Cash flow is also a challenge.
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9. Conclusion
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Why is this a good business to buy?
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This is an ideal one man operation that could with a little effort, cash flow and marketing, be changed into a real money spinner.
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