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Seasonal Cottage Rental

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Price: $1,249,000

Annual Revenue: $255,000

Minimum Equity Required: $425,000

SDE: $142,000

Location: Nova Scotia

Industry: Hotels Motels Cottages

ID: 1298

Status: Sold

Description

Located in one of the most frequented and beloved destinations of Nova Scotia, alongside a 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.

Being located next to a National Park means many things. Consistency and beauty are two things that easily come to mind. Not only is there much upside available to increase profits and value, the lifestyle to be enjoyed is one of the finest in Nova Scotia if you appreciate incredible beauty and the outdoors.

A few highlights to give you some additional insight on the current status and future opportunity:

1. Two cabins have not been rented for several years and could add an additional $50k to the top-line. The larger of the two 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 land to easily add 3 more cabins today, or you could add 7 more cabins if additional land were to be 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 (link below) 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 thorough set of books to show how many nights and when each unit has been rented, every year, it will be easy to have confidence that there is much more revenue to be created. 2023 projections are $255,000, with the business only opening in mid-June and closing just after the Thanksgiving. All other operations in the area are open the beginning of May and close the 3rd week or end of October. From $255k in revenues, the owner expects to generate $142k in cash flow 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:

https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Operations

Located on 2.5 acres alongside 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 if desired.

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

Complete NDA For Full Overview
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