30 Jul Seven Tips for Sellers
The following is used with permission from a newsletter sent out by Innovative Travel Acquisitions. While the article refers to both the firm and specific members of the firm, we felt that the comments are of interest to all business brokers.
- Do not list unless you are ready to sell at today’s market multiple or percentage of sales benchmark.
- Have past 24 months income statements ready to share.
- Put together a nice concise overview of who you are, what you do, where your business started, where it is today and where it can go with new resources.
- Do not enter into any long-term lease or subscription contracts prior to a sale.
- Never become emotional in negotiation.
- Compile a list of assets that will be acquired by a potential buyer.
- Contact Innovative Travel Acquisitions 18-24 months prior to the date you wish to fully step away from the business, as most buyers want the previous owner to stay on for 12 months after the sale.
Time Is of the Essence
Expanding upon #7 above, and knowing that Long Term Capital Gains Tax rates are set to increase by 33% on January 1st, 2013, Innovative Travel Acquisitions strongly urges anyone reading this who is considering selling in the near future to list your business now while there is still time to shoot for a December 31st, 2012 closing date. Total after tax returns will be affected by this significant tax hike. We will give a $500 discount at closing off our already low rates, if you list with us prior to August 1st, 2012.
Fear not, there are buyers out there! Banks seem to be trying to get SBA loans pushed thru again, which is a positive indications of buyers’ optimism in acquisitions at this point in the economic cycle. The aging population of tour and travel-related company owners will drive our business over the coming decades. While retirement has certainly been pushed back for many, you do not want to “die at your desk.”
Leverage our database and 42 years combined travel and tour M&A experience of Doug Haugen, James Sweeney and Robert Sweeney. We know the buyers and sellers in today’s market. Throughout ITA’s 21 year history, we have represented all different kinds of companies icnluding: technology, representation, marketing, incentive/loyalty/rewards companies, villa rental agencies, online (portable) businesses, niche tour operations, motorcoach and shuttle operations as well as numerous other niche companies.
