Annual Revenue: $255,000
Minimum Equity Required: N/A
Location: Nova Scotia
Industry: Hotels Motels Cottages
Listing ID: 1298
Listing Status: New
Located in one of the most frequented and beloved destinations of Nova Scotia, alongside the National Park, this 13 unit Cottage rental business has been well cared for, is up to date, and has received a top tier reputation from its customers that supports a strong future for the new owner. A few highlights to give you some additional insight on the current status and future opportunity:
1. 2 cabins have not been rented for several years and could add an additional $50k to the top-line. The larger of the 2 cabins would fetch $250/night or more if you were to not use it for owner's accommodations. Other owner accommodation solutions exist, let's talk.
2. Operating season can be extended by 3 or 4 weeks, which would add approximately $30k.
3. There is room to easily add 3 more cabins today, or you could add 7 more cabins if additional land were acquired from the seller.
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.
There is much upside available if maximizing profits if that is your focus. With a full set of books to show how many nights and when each unit has been rented every year, it will be easy to have confidence there is much more revenue that can be created. For the 2023 projection of $255,000, this is with the business only opening in mid-June and closing just after the Thanksgiving long weekend, while all other operations in the area are open the beginning of May and closing the 3rd week or end of October. From $255k in revenues, the owner expects to generate $142k in SDE this year.
The sale is structured considering $0 in debt. All inventory will be included.
** 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:
Located on 2.5 acres along side one of the most popular tourist routes in the province, this property is serviced by onsite well and septic. Owner's accommodations exist, with one unit that can be used as a 2 bedroom or a 1 bedroom + office.
The seller owns a separate parcel of land (almost .75 acres) with a 1 bedroom cottage style structure on it which could be acquired in addition to the business or could be rented out if desired.