The owners of a regional motel were appointed to us as part of a business mentoring program. Upon commencement they advised us that they want to sell the motel and would like our assistance with sale readiness preparation (exit preparation).
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Industry: Accommodation – Motel
Business Model: B2C
Established Business: 15+ years
Reach: One motel, regional location.
Business Size: Revenue under $1million pa.
Engagements
Single Engagement. Assist the owners to prepare the business for sale.
Starting with our deep dive diagnostic, we quickly analysed the business and identified some core areas that the business owners needed to address to get to the stage where they were ready to list the business for sale with a business broker.
These areas were turned into a list of tasks that we then used as the basis for our engagement moving forward. Over the space of several months we worked through this list, making a range of adjustments such as:
- Updating financial records
- Writing a business plan
- Installing new air conditioners and a new coat of paint in every room
- Installing solar panels
- Updating the motel signage and street appeal of the fence
- Implementing a basic marketing campaign
- And the like.
At that time, funds were available for solar panels and air conditioning upgrades under a local scheme, which the owners took advantage of. Altogether these business and aesthetic/functional changes and updates had the effect of making the motel appear more appealing and pleasant, important factors that made the motel more attractive from a prospective buyers perspective.
The changes had a positive effect on the occupancy rates. As a result, the owners held onto the motel a bit longer than planned to take advantage of increased revenue, eventually successfully selling it at the price they were after.