At some point, there will come an opportunity to either sell your existing agency or to buy one to grow your business. It may never come to fruition, but if you are serious, there is no reason to not have a successful transaction.There is a market out there and unfortunately, we have seen more deals fall apart simply due to sellers and buyers not keeping their heads in the transaction. With that said, I offer ten “Dos” and ten “Don’ts” for selling your agency.
Ten Don’ts Of Selling Your Agency
- Argue about non-competes.
- Sign long-term lease, or phone contracts, or buy new equipment.
- Call buyer’s directly or attempt to do it yourself.
- Give up client list prior to closing.
- Refuse to consider a second buyer.
- Sign on any transaction that involves no cash at closing.
- Delay negotiations and put off buyer.
- Become emotional during negotiations.
- Tell anyone about your intention to sell too early in the process.
- Ask a price that is not reality based.
Ten Dos Of Selling Your Agency
- Be open-minded if approached, and consult an industry specific expert.
- Get NDA signed.
- Go away if you get a funny feeling about the buyer. It will only magnify going forward.
- Get employees to sign employment contracts.
- Clean up any accounts receivables, buyers do not want to chase money.
- Have 24 months of CPA reviewed financials available.
- List in detail all non-recurring personal expenses you’re running thru the business – meals, subscriptions, auto, cell phones, etc.
- Have a flow chart detailing business structure and operations.
- Have a policies & procedures manual.
- Make it smooth for buyer by having organized books & records.
Have you ever bought or sold an agency? Do you agree? Do you have any more to add?
Innovative Travel Acquisitions, Inc. president Bob Sweeney and staff have completed 514 acquisitions of tour and travel related businesses since their inception in 1991. He is a proud member of ASTA,IBBA, NTA and many other known industry affiliations. Known as “the Matchmakers for the Travel and Tour Industry” they are available to answer any questions you may have by contacting them via phone 800-619-0185 or by sending an e-mail to admin@tvlacq.com.
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