Yacht Charter Company Is Seeking Investments for Expansion

Opportunity Snapshot

  • Country: Mauritius Mauritius
  • Industry: Tourism, Recreation
  • Stage: Expansion/Growth
  • Years in operations: 7, Employees: 8
  • Investment size: $860,000 / min. $520,000
  • ROI: 944% in 7 years
  • Type of investment: Debt, Equity

Investment Opportunity

We seek an investment of $860k against 25% of our business to expand in a highly lucrative and already secured niche market. ROI: 474%/5 yrs; 693%/6 yrs; 944%/7 yrs

Our company was established in 2007. We own two day charter catamarans and one speedboat (total certified asset value of $825,000), and we offer both luxury day cruises and luxury live-aboard cruises to high-end clients. Our live-aboard cruises are currently mainly conducted aboard catamarans hired from third parties.

We are seeking capital investment to expand into a highly lucrative niche market and product for which we have exceptional competitive advantages. This niche product, « Golf & Sail Charters », will consist of week-long catamaran cruises for high-end clients looking to combine sailing and golfing as part of their holiday. Those golf cruises will be run aboard luxury live-aboard catamarans specifically designed for this purpose.

We require an investment of $860,000 to finance the acquisition of the first live-aboard catamaran (subsequent fleet expansion will self-finance) and the development phase of the Golf & Sail Charters – in exchange for 30% of our company.

Based on very conservative estimates, we fully expect to turn the initial required investment of $860,000 into a profit of $15.3 million within the first 7 years of our expansion, and there is no limit to our projected growth as 1) we will be the first and only company operating in this niche market and 2) we have direct access to a network of over 2,000 European and South African golf operators that are specifically looking to sell our Golf & Sail Charter Cruises.

Foreign investors would automatically qualify for permanent residency in Mauritius, which in turn would also entitle them to purchase real estate property in IRS and RES estates. Other advantages of doing business in Mauritius include the Fixed Corporate Tax Rate of 15% as well as the Zero Capital Gains Tax.

Competitive Advantage

We already have a well-established client base and partnership network which is geared towards multi-day live-aboard charters,

We already have extensive experience in marketing and managing luxury live-aboard charter cruises,

Every single one of our partner tour-operators whom we consulted regarding our expansion into this new niche market has expressed a strong interest in marketing our future golf & sail charters,

We will face no competition in this sector as i) there are very few catamarans in Mauritius which are adequately equipped for luxury multi-day live-aboard cruises, which leaves a large unmet demand, and ii) no one is targeting the high-end golf clientele,

Golf & Sail charters have proven highly lucrative in several countries far less endowed with quality golf courses, and we will be the first to launch it in Mauritius, which is a world-renowned golf destination with several golf courses designed by world-class champions, and

Most importantly, our team has direct access to a network of over 2,000 European and South African golf operators that are specifically looking to sell our Golf & Sail Charter Cruises (Letters of intention from some of the world’s largest and most successful golf operators are available upon request).

Rationale for the deal

We will be the first and only company to sell golf cruises in Mauritius – and we will be for a very long time to come as to do so requires i) catamarans that are specifically designed to accommodate a luxury type of clientele (in other words, a floating five-star hotel), ii) a team with extensive experience in marketing, organizing and managing luxury charter cruises, and iii) established relationships with golf operators – all of which we already have.

Use of financing

The investment of $860,000 will be used to finance the acquisition of the first live-aboard catamaran (subsequent fleet expansion will self-finance) and cost of launching the project – in exchange for 25% of our company.

Opportunity for the investor

An investment into our luxury live-aboard charters is expected to generate a ROI of 944% over 7 years with an expected net profit (EBITDA) of $15.3 million.

These figures are based on a very conservative 35-week annual catamaran rental rate for the golf & sail cruises alone; they do not take into account that significant business will also be generated from non-golf cruises during the rest of the year (17 weeks) using the same catamarans as well as from the day charter operation, which would also boost the ROI.

We are mainly interested in equity capital but will consider other types of investment. We are seeking an investment of $860,000 – which is the amount needed to finance the acquisition of the first live-aboard catamaran (subsequent fleet expansion will self-finance) and the development phase of the Golf & Sail Charters – in exchange for 25% of our company. We will also consider a Minimum Investment of $520,000) in exchange for 15% of our company, as we are able to secure the rest of the financing from a lender or from other investors who have already pledged smaller investments. We will also consider a Maximum Investment of $2.6 million) in exchange for up to 75% of our company.

At the end of year 7 the initial investment of $860,000 is expected to have generated a profit of $15.3 million euro and the company will also be the owner of three luxury yachts of a total asset value of 1.575 million euro (or $2.2 million).

Ideally, and assuming the investors will be looking for an exit strategy, we would like the option to buy back some or all of the shares after 5, 6 or 7 years, at a pre-agreed price and based on a pre-agreed performance grid.

This should be considered a relatively low-risk investment, as the tangible assets – all fully-insured yachts with a high re-sellable value – will make up 80% of the investment. And as an additional guarantee we are prepared to offer the investors the full value of the assets as collateral by registering the yachts under your personal name.

Foreign investors would automatically qualify for permanent residency in Mauritius, which in turn would also entitle them to purchase real estate property in IRS and RES estates. Other advantages of doing business in Mauritius include the Fixed Corporate Tax Rate of 15% as well as the Zero Capital Gains Tax.

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