Fully describe the business's activities?
Guesthouse servicing mining employees. Restaurant and Guesthouse combination.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Guesthouse, clean bedrooms, provide meals at restaurant for guests.
How are the clients attracted to the business?
Long term clients from local mine
What Advertising/Marketing is carried out?
Does the business have any contract work?
yes, 80% long term contract work
What competition exists?
Other guesthouses in the area
What are the seasonal trends?
Non seasonal because of long term contracts
Is the business VAT Registered?
What VAT documentation is on file?
VAT documentation on request. All records for last 5 years
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Financial year 2016
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Build more rooms, upgrade to rooms currently not being utilized fully
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Cleaners, cooks, general workers, manager
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
No, owner managed
How involved is the Owner in running the business?
When does the current lease end?
Property is owned outright
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
Is a copy of the lease available?
Do you require a licence?
Yes, liquor lisence
What lease deposit and/or other surety is required?
What are the main assets of the business?
Buildings, irrigation systems,
Are any items not included in the sale?
Vehicles not included.
What is their overall condition?
As good as new
Do any require repairing?
How have they been valued ?
Valuation 2014 as well as owner valued
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Expand by building more rooms and or renovating existing rooms to achieve better rates
What is the reason for the sale?
Owner relocating and retiring
Why is this a good business?
Solid contract work from local mines. Can expand if needed.
What is the price plus stock and the net profit?
R10,000,000 purchase price Net profit of R1.5 million per annum. Includes property
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