Fully describe the business's activities?
Established and leading tour operating business offering balanced itineraries for their clients from around the world. They cater for guided tours, self-drives & fly-ins, giving priority to tailor-made tours for medium to higher end guests. They also organise fixed date departures for various markets.
How long has the business been established?
This business was established over 15 years ago.
How does the business operate on a daily basis?
The business is currently run by the owners and the staff. Reservations are confirmed by the administrative staff and tours are managed by the experienced tour guides.
How are the clients attracted to the business?
Travel agents and tour operators in Europe, USA & UK direct most of the clients to this business. Direct clients are attracted via the website and various travel platforms.
What Advertising/Marketing is carried out?
This business works via platforms for direct client marketing. Marketing is done on international trade shows to secure new travel agent contacts and maintain relationships with existing agents.
What competition exists?
There are a various business offering tours to Namibia, however to date, this business is well-established in the European markets, as well as having clients in other markets such as UK and USA and is well known for service excellence.
What are the seasonal trends?
High season is from July to November, mid-season from April to June and low season from December to March.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The tourism industry stopped in Namibia and turnovers have been non-existent since March. If borders open soon bookings are expected before the end of 2020. As this business is established and secure, they can self-sustain until such time that they start with tours. Namibia has opened its borders to all International tourists as of 01 September 2020.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Reduction in salaries and overheads, preparing to implement COVID-19 protocols determined by the Namibia Tourism Board.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All VAT documentation is available on file to pre-approved buyers.
What Balance Sheet and Income Statements are available?
There are Balance Sheet and Income Statements available to buyers since this business was estabished.
What percentage of the business is cash/credit?
Prepayment 30 days before travel : 50% Prepayment 15 days before travel : 25% Prepayment 7 days before travel : 20% Payment on completion of tour: 5%
How could the profitability of the business be improved?
Better price negotiations and cost control. Further marketing to new travel agents, selling more high-end tours.
What is the total staff complement?
There are about 40 people employed in the business.
Give a breakdown of staff/ functions/ length of service?
This will be given on request to serious buyers only after signing a non-disclosure agreement.
Do any have management potential?
Should the potential buyer not be active in this business, one manager would be required at a salary of N$ 720,000 - 960,000 p/annum
How involved is the Owner in running the business?
Day to day running of the business
Any special arrangements for the staff related to the Covid-19 pandemic?
Staff can work from home if they wish to do so.
When does the current lease end?
The lease ends with the sale of the business but we already obtained a guarantee from the owner of the property to extend the lease for at least 3 years for the new owners.
Is there an option of renewal & what period?
This will be negotiated with the buyer before purchase.
What is the annual escalation %?
The annual escalation is currently 7%
What are the trading hours?
The premises are open/accessible 24 hours. Official working hours are 08h00 â 17h00, however a cell phone number is available 24 hours in case of emergencies.
What is the square meters of the business?
2240 m2 in total -Building 390 m2 (offices, facilities, kitchen, garage and storerooms) -Open area 150 m2 (recreational area) -Parking 1700 m2
Is a copy of the lease available?
Yes, to serious buyers.
Do you require a licence?
Yes, this business is registered with Namibia Tourism Board together with a municipal health certificate, renewable annually.
What are the main assets of the business?
The main assets of the business are the vehicles and large number of travel agent contacts worldwide.
Are any items not included in the sale?
Yes, these items have been excluded from the asset list.
What is their overall condition?
Very good to excellent condition.
Do any require repairing?
All assets are maintained on an ongoing basis.
How have they been valued ?
The vehicles are valued at retail value. All remaining assets are calculated at business value: between the replacement value and the new value, depending on the conditions and repairs required. Including fixtures, fittings, plant & machinery that are unencumbered. It also includes assets on lease or hire purchase that have a value greater than the outstanding debt.
Which assets are on lease/HP and with whom?
An office printer is currently leased through Ricoh.
What are their settlement amounts?
A settlement amount is available to buyers during due diligence stage.
Will Seller settle or Buyer to take over?
Buyer to take over the lease of the printer.
Are copies of agreements available?
Yes, a copy of the agreement is available.
Are they presently insured?
All assets are presently insured.
Well known for service excellence overseas. Large fleet of payed vehicles. Well experienced team of employees. Bookings for 2021 in place.
This is a seasonal business.
Improve systems to be more reactive. New markets such as the high-end luxury travel. Marketing and selling of safari clothing and related items.
General threats related to tourism world-wide.
What is the reason for the sale?
The owners wish to retire.
Why is this a good business?
Solid base, good turnover with net profits increasing year on year. Experienced, multi-language team. Strong international relationships with tour agents and consultants. Good opportunity for further development. Guaranteed departures are solid and make a lot of revenue. Well maintained fleet of vehicles.
What is the price plus stock and the profit?
The selling price is N$ 30,000,000.00 with an annual net profit before tax of N$ 8,203,418.00