When considering the purchase of a motel business such as Leaseholds or in the case of Freehold properties where the business is usually run by an owner/operator although may sometimes be placed under management, it would be wise to complete a due diligence on the financial records of the busines in question to ensure that the appropriate trading figures and financial viability are established.
In most cases where the application for finance is involved, this may be a prerequisite by the lending institution or bank to be completed before the approval of finance is confirmed. Again, as with the selection of Finance or Legal representation, an accountant with experience and knowledge in the expenses specific to the motel industry, is more likely to provide a better indication of the adjusted net turnover then an accountant who may be unsure of what and when an appropriate add back may be applied.
Contact: Gerard McGrath or Kylie McGrath
Phone: 02 6652 7003
Contact: Geoff Gardner
Phone: 02 5942 3400
With all businesses 90% of purchasers will require finance. This requisite can ‘make or break’ a purchaser and whilst it can be managed enthusiastically deserves careful consideration.
A dream can vanish or become costly if choices made are incorrect. As with other Industrial Sectors there are specialised people who look after specific areas, finance alike, not only the lending establishment but also the individual handling the enquiry is important to their knowledge of the industry. For example, within the same group (Bank) the manager in (say) Dubbo may be well-informed on the hospitality industry but, the manager from (say) Wagga Wagga has had limited experience in this sector. Thus, a barrier may impede progress through no fault of the enquirer.
So, in choosing a financier for your purchase not only do you need to consider interest rates and finance institution charges, but their knowledge in the field.
Below we list financiers who have managed numerous motel loan approvals and are very familiar with this industry.
We are confident they will treat your enquiry enthusiastically and appropriately outline costs and procedures correctly.
Contact: David Traynor
Phone: 0421 025 217
Contact: Trevor Reed
Contact: James Smith
Phone: 02 6762 4244
Similar to your choices with financiers and legal advisers, you are often better-served to deal with an organisation familiar to your industry needs.
All insurance companies promote “tailored-packages” but in reality these are normally nothing better than other combined policies that may apply to a host of small businesses, green grocers, accountants, retailers and even patisseries etc.
To say these are tailored in practise means selecting which cover section may apply (e.g. money or burglary) in addition to other issues like fire and perils; Work cover etc.
For many reasons, the prudent purchaser will endeavour to contact the existing insurer in an effort to confirm: -
Claims experience details (frequency of loss such as vandalism; glass breakage etc.)
Any un-fulfilled insurer requests
Any abnormally high claim excesses
Any reason the existing insurer, would not make the current arrangements available to the incoming purchaser.
List of covers not taken (e.g. business interruption or machinery breakdown).
Below are details of certain companies we know have expertise in the hospitality industry and we feel sure, will gladly respond to your questions.
Contact: Hayden Sutton
Phone: 02 6722 4300
This is equally as important as financing. In the choosing of your legal representatives we believe you should seek advisers experienced in the field of business transactions especially in the hotel / motel industry. We acknowledge many legal firms have multi-skills from conveyancing, criminal matters, liquidation, equity, copyright etc, etc. But ideally, you should seek advisers who are accustomed with settlement timing, leasing, government legislation compliance.
These are important and can save you money in the longer term and your advisers need to be aware of the steps to be taken to finalise purchase and ensure a smooth transaction.
Listed below are people who have had years of experience in the field and we know them to be friendly, reliable and can talk plain-English with their clients.
Contact: Kristine Rodger
Phone: 07 5545 3030
Contact: Jason McClung
Contact: Ryan Johnstone
Phone: 07 5562 6119
Contact: Wayne Riggien
Phone: 02 6766 6688
When applying for finance to enable the purchase of a motel business or operating property, this in one of the major requirements requested by the lending institution or banks to establish that the appropriate value stacks up against the amount of the borrowing funds the lendors are willing to outlay in order to achieve the purchase. This service is provided as a mandatory expense in the finance application process, and usually on appointment by the lendors from a list of preferred valuers associated with various reputable valuation companies, some with branches throughout Australia.
Our long association with the valuers in this industry has been friendly, helpful in providing advice and efficient in the preparation of reports compiled for the purposes of finance applications. Too numerous to list here are just some to name a few:
Phone: 02 6492 2933
Phone: 02 6042 4555
Phone: 02 6742 2641
Phone: 02 4952 2655
All affiliated persons or companies referred to on this page are independently operated & have no financial association with this agency.