Murphy Business Sales helped a Travel Agency Owner Set Sail on their Permanent VacationSell a Business
Posted by Justin W. Sandridge, Business Broker on
Murphy Business Sales helped a Travel Agency Owner Set Sail on their Permanent Vacation!
Murphy Business Sales – Baltimore Office closed a sale on a Baltimore based travel agency on November 1, 2018.
Transactions in this industry are typically earned-out over a period based on the companies book of business after the sale. However, the owner wanted to be cashed out of the business up-front and would not entertain any earn-out period.
This was challenging for us to find a buyer who would agree to these terms, as most acquirers of these businesses responded: "that is not how it is done in this business." However, we felt the 20-year-old company had a track record of success and felt that a reasonable cash price for the business was possible. This deal took us nine months to find a buyer who would entertain the seller's terms.
The buyer was a larger, high-end travel company with an international presence. They liked the space the seller serviced and saw the risk versus reward was fair based on the asking price. The seller was ready to scale back her involvement in running the company but enjoyed booking travel for close clients and friends.
The buyer agreed to let the seller stay on and continue to book travel as an agent and they would be taking over the back of the house operations (the part the seller struggled with). Also, she would be monetarily incentivized to recruit new agents and get more business post close. The seller was excited about this! The deal worked out better than she could have imagined.
Selling a business for a is part art and part science. We use creativity to structure a deal that shares equal risk with seller and buyer. Our goal is to find that sweet spot and get both sides comfortable. If you or anyone you know needs a creative broker to help structure a deal that may seem challenging give us a call. If we can see the value, we can make a deal happen.
This business was closed by:
Justin Sandridge, Senior Business Broker
Murphy Business Sales – Baltimore
100 West Road, Suite 300
Towson, MD 21204