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40+ Unit Ocean Front Motel with Development Lands

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Complete NDA for Full Overview

Price: $3,299,000

Annual Revenue: $700,000

Minimum Equity Required: $850,000

SDE: $280,000

Location: Nova Scotia

Industry: Hotel Motels Cottage

ID: 1304

Description

It's not often that you will find 40+ ocean front units in such good condition as this property. It's truly set up for the next stage of growth the industry has in store. There are several key aspects of this listing that will surely provide confidence in a bright future.

A few key highlights:
- Many important upgrades have been done over the years, including windows, beds, roofing, heating systems, septic, bathrooms. The units are in very good shape for the intended market and the superstructure has been well cared for.

- Operating from early May - October, with 4 zones of plumbing, allowing for efficient opening and closing as demand changes.

- Much possibility to extend the season, as there is a demand.

- Rather significant projects happening in close proximity that provide tailwinds and future increased demand for this operation.

- 9 staff for room operations and 3 required in food service (breakfast only)

For those with a truly entrepreneurial mindset around development, the additional 29 acres of land are definitely a plus in this market. There are many options: single family, condos, additional rental opportunities, etc. That said, if this is beyond your interest and capability, you don't need to acquire the additional lands and/or the house.

The owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be sent a full Offering Memorandum that will answer most, if not all, of your questions when the listing becomes live.

Financial Information

Revenues for the 2022 season (May - October) expected to meet or exceed $700k. Pre-Covid was $685k.

There is an opportunity to open in the winter months, as there is sufficient demand.

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 35% 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

Operations

With a total of +/- 41 acres, including 29 acres of prime development lands, as well as a beautiful 3-bedroom single family home, this real estate package is ideally situated. The family home is serviced by on-site well and septic. The additional 29 acres of development lands would be serviced by town/city sewer and water.

Many updates have been done over the years to all buildings and mechanical systems. A discerning buyer will not be disappointed.

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA For Full Overview

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA for Full Overview
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