Aldes Lowveld Business Brokers

Summary

Feel the wind on your face. A unique self-catering lodge and backpackers offering conference facilities with team buildings. Guided trike tours to the gateway of the blyde river canyon.

1. History Background

Fully describe the business's activities?

Backpacker and lodge with guided trike bike tours for sightseeing. Self catering with serviced chalets.

How long has the business been established?

5 Years and 8 months.

How long has the owner had the business?

8 Months.

2. Present Market

How does the business operate on a daily basis?

One staff member lives at the lodge he opens the lap at 06:00 so guests may use the cooking facilities. Self catering 5 rooms have kitchenettes .the other 6 need to make use of the main lapa which is the central kitchen with lounge and T.V room.

How are the clients attracted to the business?

Bike rides are booked and tourists are treated self drive guided tour. Unique business in this area with accommodation to sleeps 65 people it has 11 units.There is a huge sign board at the entrance of the town and word of mouth about the trike tours is spreading.

What Advertising/Marketing is carried out?

Backpackers - Coast to Coast - Big bill board as you enter the area and booking agent and company's are making use of the lodge as a team building venue.

Does the business have any contract work?

Not as yet.

What competition exists?

Other lodges. But not as unique and cannot accommodate the same amount of people .they also do not offer the unique trike tour.

What are the seasonal trends?

School holidays ( Team building schools ).

3. Financial

Is the business VAT Registered?

No.

What VAT documentation is on file?

N/A.

Are there up-to-date Management Accounts available?

Yes.

What Balance Sheet and Income Statements are available?

Can be provided on request.

What percentage of the business is cash/credit?

All cash.

What is the age analysis of the debtors book?

No debtors.

How could the profitability of the business be improved?

More marketing and corporate groups marketing - team building. Liaising with the tour busses and ensuring they bring the tourists to the lodge on their travels.

Is Seller finance available and for what amount?

No.

4. Staffing

What is the total staff complement?

4 Staff.

Give a breakdown of staff/functions/length of service?

2 x Full time cleaning staff to clean the rooms and do the laundry . 2 x part time to tend to the garden and maintenance of the lodge.

Do any receive special perks or incentives?

No.

Are they on contract?

No.

Do any have management potential?

Yes. ( Promise )

How involved is the Owner in running the business?

Very.

5. Premises

When does the current lease end?

Owner owned.

Is there an option of renewal & what period?

N/A.

What is the annual escalation %?

N/A.

What are the trading hours?

24 Hours 7 days a week.

What is the square meters of the business?

2,230 sqm.

Is a copy of the lease available?

Owner will sell whole unit. The lodge is on the ground owned by the seller.

Do you require a licence?

No.

What lease deposit and/or other surety is required?

Own deposit on the water/ rates and electricity.

6. Assets

Is a full asset list on file?

Yes.

Are any items not included in the sale?

No, card machine belongs to the bank.

What is their overall condition?

Good.

Do any require repairing?

No.

How have they been valued ?

Depreciated valued.

Which assets are on lease/HP and with whom?

All paid.

What are their settlement amounts?

N/A.

Will Seller settle or Buyer to take over?

Seller settled.

Are copies of agreements available?

Yes.

Are they presently insured?

Yes.

7. S.W.O.T. Analysis

Strengths?

Good Location. unique tourist facility also for corporate team building and schools events.Has self catering with full kitchen facilities avaliable, a lounge area with fire place and television.

Weaknesses?

Needs more ablution facilities 10 + 2 people only 1 bathroom.A swimming pool would also be a draw card.

Opportunities?

To market more to corporate , schools and overseas market .

Threats?

Not at the moment.

8. Reason For Sale

What is the reason for the sale?

Would like to return to Australia where my family is.

9. Conclusion

Why is this a good business?

Has loads of opportunity. Its unique concept and only venue in town that is able to cater for functions and can accommodate a large amount of guests at one given time.

What is the price plus stock and the net profit?

4,7 million includes all 15 bikes and gear ,property and buildings.