Fully describe the business's activities?
The business is a localized property management company that manages, maintains and markets holiday properties in a highly popular local and international tourist destination just outside of Cape Town, Western Cape on behalf of their owners.
How long has the business been established?
The CC was registered in 2007, but has been fully operational since 2003
How long has the owner had the business?
The one partner has been involved since inception in 2003, and the other partner joined and formalized new CC in 2007
How does the business operate on a daily basis?
1 partner manages the staff to clean and service houses, attends to online booking inquiries and liaises with service providers to attend to maintenance issues. The other partner attends to admin, financials and marketing.
How are the clients attracted to the business?
Marketing through website, exposure on Facebook, promotions with the local Tourism bureau, flyers, adverts, magazine articles and blogs. Word of mouth and repeat business
What Advertising/Marketing is carried out?
Dedicated website , Google Adwords, Facebook, Xplorio, SA-Venues, Airbnb, Travelground, Lekkeslaap, local wedding venues.
Does the business have any contract work?
All clients have a contract with the business with scope to sign on more properties within the vicinity. 5 Maintenance contracts, and 8 Holiday letting contracts
What competition exists?
Small establishments running their own properties on Airbnb, independent operators looking after a few houses in the village. Larger establishments that have a few units on their property and are all owner-managed.
What are the seasonal trends?
Winter in the Cape can be very slow, with âthe seasonâ picking up from September through until April. May â August is quiet. Wedding season begins in October, and there are a number of venues close to the village that do not have sufficient guest accommodation. Very popular as a weekend destination for local residents of Cape Town central
Is the business VAT Registered?
No - below the T/O threshold requirement
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Full sets as required from inception of the business. AFS 2016 completed, AFS 2017 in process as financial year end is 30 July
What percentage of the business is cash/credit?
There is no credit facility offered to clients. All bookings are secured with a 50% deposit on reservation, with balance due 10 days prior to occupation. Refund policy applicable for late cancellation.
What is the age analysis of the debtors book?
Can be produced as requested to include pre-paid deposits till 2018
How could the profitability of the business be improved?
Increasing bookings by running more variable rate options throughout the year, increasing number of houses listed.
Is Seller finance available and for what amount?
No seller finance available
What is the total staff complement?
3 permanent staff 1 permanent gardening/maintenance staff (to be replaced on retirement) 1 part time gardening staff (to move to permanent position)
Give a breakdown of staff/ functions/ length of service?
1 supervisor/administrator: Supervision of other cleaners, capturing of financial transactions to prepare for monthly accounts. 2 cleaners: Attendance to house management Gardener: Maintenance of grounds at holiday houses
Do any receive special perks or incentives?
3 permanent staff have retirement/death/disability policies. Annual bonus is negotiated on their behalf with client/owners for all staff.
Are they on contract?
All permanent staff have employment contracts
Do any have management potential?
Yes, the supervisor has undergone continuous training and has progressed from cleaner to supervisor, with computer and management skills.
How involved is the Owner in running the business?
Both owners are very involved on a day to day basis.
When does the current lease end?
No lease. Business is run from home
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
Officially 8 â 5, but hospitality industry needs attention at all times.
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
The business is registered with the Local Tourism and Business chamber and represents all holiday houses listed on its portfolio. There is no municipal bylaw restricting self-catering establishments being run from a single use residential property.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Contracts with Private home owners
Are any items not included in the sale?
HP Laptop, wooden Wendy office
What is their overall condition?
Do any require repairing?
How have they been valued ?
Purchase price less depreciation
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Seller will settle
Are copies of agreements available?
Are they presently insured?
Good consistent growth year on year, stable workforce, well established brand, long term contracts with clients, improved popularity of village as a tourist destination, growth of wine industry, wedding venues, outdoor activities (MTB race, Triathlon, canoe race
Competition from small operators undercutting prices. Economic pressure on tourists.
Expansion to secure more âMaintenance housesâ as development in the village grows, with more absentee owners needing their holiday homes serviced.
No real threats as the location is a constant vacation for locals and demand peaks during international arrivals to the area
What is the reason for the sale?
Both partners have been working in this industry for a long time, (10 and 14 years) and are approaching early and mid 60âs and are looking at retiring.
Why is this a good business?
There is a secure and stable income derived from the fixed contracts, even in quiet rental periods. It can be run from home, and is an attractive model for a husband and wife team. It has the potential for growth, and the financial records reflect its stability.
What is the price plus stock and the net profit?
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Annual Turnover Amount between R 500 thousand and R 6 million