Four Tips For Selling Your Agency
by Richard D'Ambrosio /Bob Sweeney. Photo: Facebook.
“I am 58 years young and two-thirds of the travel agency owners in our database are older than me,” says Bob Sweeney. As the advance guard of the Baby Boomer generation considers selling its travel agencies, TMR asked the founder and CEO of Innovative Travel Acquisitions, Inc., Alpharetta, GA, to offer up some advice. Sweeney’s firm has helped sell 612 travel-related companies since 1991.
Here’s what he said:
1. It’s never too early to start planning.
Start to plan for a sale at least two years prior to the transaction. Key to maximizing value is to have solid books and records, so make sure yours are in order. Then bite the bullet and eliminate any non-productive employees; that will make your numbers look better and save the potential buyer from having to do it.
2. Keep it strictly business.
Keep your emotions in check. Know the reality-based value of your agency prior to any meetings. And remember that trying to hard-ball negotiate on Friday afternoon with a buyer who might be your boss on Monday is never a good idea.
3. Serious buyers will keep your secrets, but…
Make all buyers sign a non-disclosure agreement prior to exchanging any information.
4. Get professional assistance.
Even if you are selling to a family member, or have a friend who is an attorney, utilize a lawyer who knows and understands the travel industry to render an appraisal and handle the myriad legal documents.