Taking over an existing filling station after the retail license is granted can be a minefield of complications if handled by a non-industry expert. Takeover should be well planned and meticulously executed.
Examples of a Finmil Assisted Takeover Process
Before Takeover
1. Stocktake:
Ensure that convenience and all other stock is accurately counted and that quantities are adjusted to take variances and old or redundant stock into account on the stock system.
2. New agreements
a. Finance houses: Sign necessary agreements with finance houses to ensure continuity and acceptance of all the possible fuel and fleet-cards.
b. Cash: Sign new agreements with cash-in-transit and cash-box companies.
3. Letters of appointment
Prepare and sign new letters of appointment with existing personnel.
4. Key account customers
Introduce yourself to key customers and ensure them of your ongoing support and loyalty.
On Date of Takeover
1. Stock
Calculate the amount needed to pay for the stock, based on net realisable value or cost, whatever is the lowest.
2. Accrued leave
Calculate the accrued leave due to employees and deduct from the stock amount.
3. Debtors deposits
Verify the deposits held and deduct from the stock amount.
4. Floats
Count and verify all cash floats and add to the stock amount.
After Takeover
1. Overs and unders
Calculate any overs and unders on ongoing accounts, such as water and light, rent, telephone, etc., and ensure payment by the outgoing dealer.
