If you own a hotel, a lodge or any other hospitality property, and you are looking for either obtaining extra funds or selling the entire business, we can offer a solution. As the properties like yours tend to be more expensive and more unique, it is much more difficult to find an interested buyer. We can help you by attracting not one, but a group of investors through the Shared Ownership Investment (SOI) model.
How to Start • Benefits for Business Owners
The first step in the process of attracting investors through the SOI model would be preparing a solid business plan that would convince them that they can get a good return if they invest in your business. We can help you build such a plan and prepare the entire presentation of your business in the form of an investment project.
Our work on developing investment projects starts with selection. Out of many different options, we select only those projects that would be highly beneficial and safe at the same time. One of the ways to achieve that is working with businesses that include commercial properties and lands as the major part of them. In other words, we deal with investment projects where the value is supported by hard assets. We call them Real Estate Based (REB) Businesses.
However, the presence of commercial real estate does not automatically lead to high return. It just serves as a good safety net for the buyers. There is one more important component - potential to grow. That is why we focus on businesses that have a good basis for expansion and improvement, and therefore, can add value and increase profit. Even if your business is already successful, for our purpose it is more important that it still has room for improvement.
As a part of your business presentation, we prepare a detailed development plan based on the 3R principle: Renovation, Repurposing & Rebranding. For example, when we work with the lodging industry, our investment projects can include renovation and redesign of small hotels and resorts, adding more rooms, targeting specific groups of guests who would pay higher rates, expanding seasonal use, offering additional services and entertainment, etc.
The combination of these two strong factors, like having a commercial property as a big part of the investment project and having a solid business plan, plays an important role in convincing potential buyers that this can be a highly profitable investment for them.
Developing a sound business plan and creating a convincing presentation of the investment project is an essential part of our services that we provide to business owners.
If you are looking for buyers or investors for your business, please contact us, and we will discuss how we can help you.
The main idea behind the SOI Model is that you sell the shares of your company (partially or all of them) not to a sole investor, but to a group of small investors. These small investors form a consortium for the purpose of accumulating funds and making a payment. Therefore, for you, as the business owner, selling shares to a consortium is not much different from selling to a sole investor, since you receive funds all at once and you don't have to deal with each small investor separately. Thus, no extra hassles for you.
At the same time, it is much easier to find and put together a group of small investors, as opposed to finding a single major buyer, who would have both the necessary financial recourses and a keen interest in your business. In that regard, the SOI model offers a great advantage to business owners.
And if you take into account the fact that you won't have any extra obstacles when dealing with many investors instead of one, this is a win-win scenario for you.
The process and the terms are very simple. Here is how it works: first, a group of interested in your business investors form a consortium, which signs a preliminary agreement with you; then this consortium accumulates the funds for purchasing shares in your business. If the consortium fails to collect the required amount within the agreed upon timeframe, the deal is off. Or, alternatively, you can revise the terms based on the amount that has been collected so far.
The way of attracting investors through the SOI model gives you, as a business owner, a lot of flexibility. You can either use the collected funds for injecting them into your business for further expansion and improvement, or you can just sell the business - partially or in whole.
Moreover, you can negotiate the terms that are most suitable to your goals, as the agreement between the owner and investors is prepared based on the discussed and mutually agreed arrangements. For example, you can sell just a portion of your company's shares and keep your position of the business operations manager. Or, you can sell the business entirely, but keep working in it as a manager. Or, on the contrary, you can invite the new co-owners to participate in the business operation and decision making. The list of possible arrangements is endless.
We help owners sell their business or attract extra funds if needed. Our work with clients expands from initial assessment and development of an investment project to promoting it to potential investors and taking care of all other steps and arrangements in order to get the deal completed.
The essential part of our services is developing a sound business plan and creating a convincing presentation of the investment project to potential buyers. Then, when investors are found, we help all participants of the deal get smoothly through the stages of the Shared Ownership Investment (SOI) model.
We would like to emphasize that SOI Model is completely transparent and protects interests of all parties involved. We actively use modern technologies for this model in order to reduce the risks for all sides to the minimum.
If you have a property that could be used for accommodation purposes or can function as a resort/retreat, and you plan to sell it or you need money to expand your business, please contact us to discuss how we can help.
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