Selling or buying an agency or tour operation? It’s happening a lot and Innovative Travel Acquisitions Inc.’s founder-owner Bob Sweeney has some tips.
Buyers:
• Put a 10-day expiration date on offers.
• Place a deposit in escrow to remove the business from the market upon acceptance of LOI.
• Be prepared to give a small signing bonus to keep key staff under two-year contracts.
Sellers:
• Leave behind the #1 deal killer: egos.
• Keep local attorneys and CPA’s away until the end because it is difficult for them to give objective advice to a client they fear losing.
• Have good books and records.
• Develop good sales packages including flow charts of responsibility for each employee.
• Plan to stay on a one year after the sale for a smooth transaction.
• Price your business 10% above market comparable’s.
• Have an intermediary who specializes in your industry involved so you don’t have to do hardball negotiating with the person you may soon be working with.
Report by David Wilkening
