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Beautiful, Top-rated Beach Resort with Cottages

Description

This beach resort is located in a premier tourism destination in New Brunswick, centrally located to major tourist attraction, national parks and cities. Perfectly located at the entrance of the most famous beach in New Brunswick with this 20-unit loft-style cottages with all the necessary convenience, two-bedroom, full bathroom and complete kitchen. There are also 4 suites in the main building with laundry facility. All inventory is to be included.

 

A few highlights to give the potential new owner some additional insights on the status and future opportunity:
The facility has been renovated in the last 3 years, is up to date, and has received a top-tier reputation from its customers that support a strong future for the new owner. The business operates year around. From June to September, the property is rented on a weekly basis for tourism. While from October to May, the property is rented on a monthly basis.

The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

With a full set of books to show the revenue year around, the owner expects to generate $585,000 in revenue and SDE of $340,000 this year.

 

Annual Revenues and Seller's Discretionary Earnings:
2021
Revenue: $500,000
SDE: $290,000
2020
Revenue: $390,000
SDE: $215,000
2019
Revenue: $365,000
SDE: $180,000
2018
Revenue: $200,000
SDE: $45,000

 

** Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
 

 

** Our expectations are for a minimum 40% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:
 
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Real Estate

Each cottage contains two units of approximately 550 sq. ft. on the main level and 275 sq. ft. on the upper-level loft area. The 4,824 sq. ft. reception building has 4 suites, utility room and laundry facility.

 

The cottages occupy 2 acres on the 6.52 acres of land with room for expansion.