Fully describe the business's activities?
An Exclusive country Lodge situated in an up-market area on a 2 hectare estate in a nature reserve with a sea facing view. This lodge consists of a domestic home with three bedrooms, two bathrooms , living and entertainment area and double garage. There is also the presence of Bush-buck on the premises. Also, on the lodge is situated a wedding chapel, a licenced entertainment/conference center with a fully equipped industrial Kitchen and ablution facilities designed for 150 guests. There are also 4 fully furnished self catering cottages designed for 4 guests per cottage. Additional entertainment areas such as the Pool and Lapa area are sea facing over the Indian Ocean with a beautiful garden landscape and also equipped with ablution facilities. The Lodge also boasts large paved areas such as driveways, parking area, chapel and entertainment areas with comprehensive garden lights and water features. The property is surrounded by an electric fence with a sophisticated security systems in place. The venue has a back-up generator and can operate independently in load shedding times. The lodge also boasts with a borehole linked to the sprinkler system for the garden and 4 Wendy houses for storage of equipment.
How long has the business been established?
How long has the owner had the business?
The owners started the business.
How does the business operate on a daily basis?
The lodge caters for weddings, receptions, conferences, parties, year end functions and casual holiday guests. The owners of the Lodge live on the property and manage the staff . During the quieter months the catering is outsourced.
How are the clients attracted to the business?
The Lodge advertises on the internet via website, brouchers and leaflets. The lodge is well established and an icon in the hospitality industry with an excellent reputation and word by mouth advertising.
What Advertising/Marketing is carried out?
Website., brouchers, and word by word advertising.
Does the business have any contract work?
No contract work
What competition exists?
Numerous other wedding and reception/conference facilities.
What are the seasonal trends?
Busier in summer with a peak in December.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Each bi-monthly return as requested by SARS
Are there up-to-date Management Accounts available?
Yes updated Management Accounts are available.
What Balance Sheet and Income Statements are available?
Annual financial Statements for period ending February 2016 and management accounts for period 1 March 2016 to 28 February 2017.
What percentage of the business is cash/credit?
50% deposit with booking and balance payable on day of event.
How could the profitability of the business be improved?
The self catering units can be increased and the main dwelling house can be converted into a guest house,
Is Seller finance available and for what amount?
The seller is prepared to establish a (Pty) Ltd and to sell shares in the business, or to sell the business as a going concern, or to sell the business on a staggered basis.
What is the ROI?
The return on Investment is 6 % which is excellent considering you stay on the premises.
Who is the bookkeeper/Accountant?
What is the total staff complement?
At present a full time house keeper and Garden boy. The catering is outsourced to catering companies in the quieter season and casuals are hired in peak season.
Give a breakdown of staff/ functions/ length of service?
Both staff members have been with the Lodge since it started in 2008.
Are they on contract?
Both staff members are on Full Time Employment Contracts. During busy season ( November and December ) casual workers are hired on a fixed period basis.
How involved is the Owner in running the business?
The owner is 60% involved in managing the business.
Who is the Owner/Landlord?
The current owner of the business is the owner of the property.
Do you require a licence?
A liquor licence is required. A new owner is allowed to operate on the sellers licence until it is transfered onto the new owners name.
What are the main assets of the business?
The main Assets of the Business is the Property and Buildings. The buildings are well designed and a wonderful ambiance is created by the natural surroundings and area. A full list of furniture and Equipment will be supplied to qualified buyers.
Are any items not included in the sale?
All items on the list are included in the sale.
What is their overall condition?
Excellent working condition. On date of take over all equipment will be in a working condition or replaced.
Do any require repairing?
No repairs required at present.
How have they been valued ?
The Assets, Furniture and Equipment have been valued at a fair market related value.
Which assets are on lease/HP and with whom?
All assets are fully paid off.
Are they presently insured?
The premises and equipment are comprehensively insured.
This business is established and profitable, been going for ten years and built an excellent reputation in the hospitality industry. All the buildings are relatively new, well designed and maintained. The ambiance of the Lodge is enhanced by he layout of the buildings and gardens.
A competitive business which always takes a down-turn in a sluggish economy. All expectations are that the economy will start to improve in 2019.
This is an established lodge that has made it's footprint into the entertainment and hospitality industry. The asking price is very realistic considering the exclusive area and well designed buildings.
The erf has been zoned as a Hospitality and entertainment area and all health and Safety issues are compliant. there is therefor no risk to this business.
What is the reason for the sale?
The owners wish to enter into a new venture.
Why is this a good business?
This is a well established and profitable business. The lodge is an icon in the hospitality industry and the property plus buildings is worth well more than the asking price. They have an established clientele which brings repetitive business and good referrals by word of mouth advertising.
What is the price plus stock and the net profit?
The asking price of R22 000 000 is negotiable and the operating profit of the business for the year ending February 2017 was R1 297 982
Annual Turnover Amount between R 500 thousand and R 6 million