Fully describe the business's activities?
This beautiful lodge and resort caters for both local and international tourists who want to experience the raw adventure of Africa in an exquisite and well organized resort. Facilities offered are boat hire/safaris, bird watching, tiger fishing, drive safaris in Lower Zambezi National Park, full catered tented and air conditioned accommodation, self-catering cottages, electrified camp sites as well as canoe safaris. The resort is located on an ancient sandbank overlooking the mighty lower Zambezi river.
How long has the owner had the business?
The present owners had been involved in the business since 2005
How does the business operate on a daily basis?
Bookings are normally done approximately two weeks in advance through travel agents and tour operators and privately using the internet. The lodge will cater for each visitors requirements such as a canoe safari or fishing safari. The well trained local staff is well rehearsed in catering for each individuals needs.
How are the clients attracted to the business?
Most bookings are done via tour operators, travel agents and direct with the lodge. The business also boasts a neat website as well as a active Facebook page that also attracts enquiries and bookings. There is also a steady stream of word of mouth clients who book directly with the lodge along with repeat visitors.
What Advertising/Marketing is carried out?
The business has a website and regularly forward updated details to travel agents and tour operators. Exposure in fishing and travel magazines as well as adverts and an internet advertising campaign.
Does the business have any contract work?
This is a tourist attraction. The business does not have any specific contract with one tour operator.
What competition exists?
There are other lodges on the river catering for similar clientele. None of these however provide the same level of service. The business is also far better priced with more facilities available.
What are the seasonal trends?
The business is busy all year round except downturn in December, January and February. Reason for this is a fishing ban that is in place during this specific season to allow fish to breed. It is also the rainy season in Zambia and the game viewing experience is lessened by the bush density and greenery.
Is the business VAT Registered?
What VAT documentation is on file?
In our office we have proper VAT documentation that complies with Zambian regulation.
Are there up-to-date Management Accounts available?
The owner has assisted us with proper up to date management accounts. These records provide for a detailed breakdown of all income and expenses for the business. It should also be noted that the business derives income from more than one activity - Chalets, Cottages, Tents, Camping, Boat Hire, drive safaris, sunset cruises, canoeing trips and fishing packages. Note: The Management Accounts are provided in Zambian Kwacha and Aldes used a Transfer Factor of R9.5
What Balance Sheet and Income Statements are available?
Details that we have available is up to date for the month of May 2019 (unaudited).Audits AFSâs for all periods from 2005 to 2018.
What percentage of the business is cash/credit?
This is a tourist destination and bookings and payments are made in advance.
How could the profitability of the business be improved?
A more comprehensive marketing campaign targeting international guests needs to be done by an experienced marketer in this industry. This, I believe, will increase turnover significantly as there is spare âheads on bedsâ capacityâ.
Is Seller finance available and for what amount?
The seller will not accept down payment for the business.
What is the total staff complement?
There is a staff compliment of +/- 33 people excluding the owner.
Are they on contract?
Some staff members are employed on a permanent basis but mostly just managers. Some staff are employed on annual contracts in line with the downturn of the business during the off season (Dec-Feb). So employed from Mar-Jan.
Do any have management potential?
The owner is most satisfied with the staff. There is a manager, assistant manager, accountant, chef and maintenance manager that take care of the day to day operation of the business. All staff are Zambian and have the appropriate statutory qualifications necessary for the smooth running of the lodge. There is very low staff turnover at management level.
How involved is the Owner in running the business?
The owner, a Zambian resident, visits the business on a regular basis and is fully involved with daily communications and decision making. Price setting and strategy is also done by the owner.
Is accommodation provided?
There is accommodation for the staff on the property and the owners have also recently upgraded the staff accommodation. Housing allowance is provided for other staff.
Give a breakdown of staff/functions/length of service?
Most of the staff has been with the business for more than four years. As the business grew and more facilities added the staff compliment also increased boosting well for the local economy. In office we have a complete breakdown of each staff member, their years of service and gross salary. Staff include an Operations Director as well as a General Manager, Bookkeeper and Reception Manager.
When does the current lease end?
It should be noted that the business operates on two co-joined property leases. Both leases are 99 years with the first lease was registered in May 2008 and the second on March 2010.
Is there an option of renewal & what period?
What are the trading hours?
The resort is so to speak open 24 hours
What is the square meters of the business?
23 Hectares of which 540 meters is prime river frontage on the banks of the mighty Zambezi river.
Is a copy of the lease available?
We have a copy of the Title Deed. As broker I need to make a note that the business documentation and business record keeping is of immaculate standard.
Do you require a licence?
It cannot be emphasized enough that there are many licenses, permits and certificates needed to operate a lodge in Zambia. These include to name but a few: Restaurant License, Liquor license, Health Certificate, Hospitality license, Fire Certificate, License to Commence Investment, Medical Certificate for Staff handling food, License to operate Radio Equipment, Angling License in terms of the Fishing Act, License to possess Petroleum. This creates an enourmous barrier to entry for any newcomers to the Zambian tourism industry. These permits and licenses come at a sizable expense and is very time consuming. Licenses are granted in terms of certain provisions in local law and acts, whilst permits are given from the local district councils. Owner will assist and guide potential buyer on how to apply for the renewal of these licenses and permits. On file we have copies of all of the licenses, permits and certificates required, all is up to date and in order. The lodge Management have full know-how on all licences and renewals, these are generally not complicated issues once in place.
What improvements have been done to the property?
The owners have over the past few years made numerous improvements and additions to the property in order to cater for demand. Some of these included the building of a fully air-conditioned and equipped campsite bar and the completion of a campsite with electrical points. They have also installed a swimming pool in the campsite and built three luxurious rooms equipped with DSTV and aircons. There are also nine thatched tented chalets on stilts all on-suite. There are two self-catering cottages - one of which is fully air coned. They have also installed an electrical game fence to fully enclose 23 hectares and have drilled a bore hole. The property further consists of a large boat shed alongside store rooms and workshop. Cement pathways link all areas of the lodge and campsite. There is also a slipway to launch boats into the river. For convenience bulk diesel and petrol storage tanks have also been installed. All of these improvements have been done from the cash flow of the business.
What infrastructure have been developed?
Internet system works with local ISP providers. The owners have also constructed jetties on the river front, pathways through the lodge and the campsite, erected an electrical game fence and constructed a slipway to launch boats into the river. All of the infrastructure was paid for from the cash flow of the business.
Are any items not included in the sale?
All assets and bank balances are included in the sale as well as any current liabilities. In other words the business is being sold as a going concern.
What is their overall condition?
The assets are well maintained and in an excellent condition.
Do any require repairing?
Ongoing maintenance as required is being done. There is no equipment that currently needs any repairs. All repairs and maintenance required are done by the competent staff and there is a carpentry workshop on the premises. The workshop foreman and carpenters employed by the business are more than capable to attend to all and every maintenance needed - they even manufacture own windows and doors, everything that is needed.
How have they been valued ?
The owner assisted us with initial purchase price of the assets and in the asset register there is also a depreciated value for the assets. It is our opinion that the owner is conservative and fair on his asset value.
Which assets are on lease/HP and with whom?
All the assets are unencumbered and there are no outstanding leases or HP's. Assets are registered in the company's name.
Is a full asset list on file?
To the serious buyer a full asset list will be provided. The purpose and scope of this report does not provide for a breakdown of an enourmous asset list of the business. We will be able to assist with a full asset list as well as a breakdown of essential assets. Assets are divided into vehicles, plant and equipment, marine equipment, fixtures and fittings and office equipment.
Vehicles and Boats
There are 5 aluminium boats with 4 stroke Yamahas (70hp and 100hpâs) as well as a big 23â transport boat with Mercury 175hp. 3 of the Aliboats are less than 3 years old. There is also a Toyota land cruiser pickup that has been converted to a 9 seat safaris vehicle as well as a luxury kombi to transfer guests to and from Lusaka. The manager also has a very tidy Toyota for business use. There is another Toyota used for grocery and small party airport pickups
Additional information on assets.
The owners rebuilt in its entirety the lodge bar, completely re-equipped the kitchen and bought 6 new large chest deep freezers. A new new laundry area was created with new washing machines and tumble dryers. A considerable amount of lodge furniture is being built by the carpenter that is employed by the business and this in house capability is truly a huge asset to the business.
The proper record keeping that the owner implemented in the business will ensure a smooth takeover for a new owner. The location of the business is a definite asset. The quality of service that is rendered by the business and the vast range of facilities catered for places this resort/lodge head and shoulders above any competitor. This is a truly professional outfit.
The number of licenses required - this does effect the whole tourist industry in Zambia. This may however be a weakness within the whole tourism industry in Zambia and should be seen as a huge advantage for this specific business with all the licenses, permits and certificates properly updated and in order.
There are many opportunities to expand the services of the business this may include a game sanctuary and even small farming projects. The prime river area is yet to be developed to its full potential.
A slow down in the tourism industry will be a threat to this type of business.
What is the reason for the sale?
The owner manages the business from the Copperbelt and also has another business there to run. The owner do not have extra time available to attend to the need to grow the business and have come to the decision to sell their shares in the company and concentrate their time on their other businesses where they are actively involved.
Why is this a good business?
The business has shown consistent growth since its establishment in 2004 both by way of adding new services and a growth in visitor numbers. The cash flow of the business is very positive and there is huge scope for further development. This is a truly professional outfit with proper documentation, licenses and permits all registered in the company's name.
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