Are there up-to-date Management Accounts available?
The sellers provided us with occupancy figures for the past 12 months as well as a sheet with extra income per entity, which includes extra meals such as lunches and dinners, conference facilities and transport offered to clients.
What Balance Sheet and Income Statements are available?
Financial statements for all the entities for the year ending February 2017, 2016, 2015, 2014 and 2013 are on file. Consolidated AFS for the 7 months ending September 2017 are also on file. The auditor also consolidated the group and exclude the owners drawings of R2,008,684 from the income statement and treated it as a balance sheet entry (shareholders loan accounts).
Is Seller finance available and for what amount?
The seller wishes to sell all 4 properties and operating company as a whole for R33m
Who is the bookkeeper/Accountant?
Rautenbach and Rautenbach Professional Accountants.
How could the income of the property be increased?
The current average occupancy for the group is 70%. To maximise it to full capacity the owners could employ a marketing consultant to approach all the NGO's in the area.
What is the monthly rates and taxes payable to local authority?
Copies of all the municipal bills and zoning and consents are on file and figures given in each entity mandate under expenses.
What rental deposit has been secured from the tenants?
Guests book and pay in advance and outstanding amount in terms of extra meals, transport and conference facilities are paid for before the guests leave.