It is a very busy time for agency owners seeking to retire. The first baby boomers are turning 68 years old this year and this dovetails into increased activity between buyers and sellers.
The goal of an agency sale is to maximize the highest after tax returns for the seller. The market has firmed up recently as the stock market continues to grow in a low interest rate environment. If you are considering selling, the key tips for sellers are to not sign any long-term contracts such as GDS or office lease contracts prior to listing their agency for sale. Convert your customers to 100% credit card payments. If you have a zero balance accounts receivable it is best, as most buyers and sellers prefer to not exchange money to settle those accounts. Sellers should have a detailed list of all personal expenses being run through the business (ie: car payments, all types of insurance, club dues, personal travel, dues, subscriptions, etc.) because the buyer will want to know the total seller’s discretionary benefits derived from the agency.
These are just a few of the tips for selling in 2015. For anyone interested in exiting the industry, there is a seminar being held in Atlanta, GA on Friday, April 17th at the Renaissance Concourse Hotel from 8am-4pm featuring Mark Pestronk, industry attorney; John Coffman, Direct Travel CFO; and Bob Sweeney and Doug Haugen, Innovative Travel Acquisitions brokers. Topics will include traps for the unwary and the 5 most common seller’s mistakes. The cost is $199 per person (includes continental breakfast and workbook) To register, email firstname.lastname@example.org or call 800-619-0185.
Innovative Travel Acquisitions, Inc. president Bob Sweeney and staff have completed more than 600 acquisitions of tour and travel related businesses since their inception in 1991. Bob has been in the brokerage industry for 21 years. He is a proud member of ASTA, NTA and many other known industry affiliations. Known as “the Matchmakers for the Travel and Tour Industry” ITA is available to answer any questions you may have by contacting them via phone 800-619-0185 or by sending an e-mail to email@example.com.