There are so many different reasons for a succession, age is classic, but also illness, perhaps one would like to reorient oneself, personally “the air may be out”, the change into the employment relationship and much, much more.
Then the urgent questions arise: Is that even possible? How does it work? What is my tour operator worth at all? What is to be considered? Do I do this alone or do I get professional help?
Our view of a tour operator sale or purchase:
As a rule, you buy or sell a tour operator once in a lifetime. As a rule, you have invested a lot of time and energy over the years, family and friends have had to cut back. There were often good times as well as bad. Your life’s work needs to be appreciated. It is always a very individual matter and numerous aspects have to be considered. We know from practical experience of cases of dramatic complications with a tour operator sale, which we often get only afterwards in the context of the expert activity on the table.
Therefore we generally recommend professional support and assist our clients before the sale, during the sale and even after the sale of the tour operator.
One of the first questions: What is a tour operator worth?
We regularly evaluate tour operators and this question is not easy to answer. The value of the business depends on many different factors that need to be assessed in each case.
In particular, we also consider the potential of a company. Because it is often the case that due to personal circumstances (illness, air is out, turnover is enough), service is simply rendered according to regulations. What a new owner could change with commitment and new energy.
Special features of tour operators?
Of course, the core questions of turnover, location and return are important, but also very important are things like the customer structure (is there an obsolescence), newsletter, the number of service providers, distribution channels, margin, guarantee contracts, insolvency and liability insurance, payment defaults, portfolio and destination structure, back office and sales software. This makes it very easy to understand why special care and know-how is required when selling a tour operator.
How do we proceed?
The first step is to get to know each other personally. It is a project that also requires trust and both sides, you as well as we, must be able to imagine that we carry out this project together.
Before the first appointment we ask you to fill out a small checklist and provide us with a current BWA and annual financial statements. This will enable us to get a first impression and to give you a relatively concrete assessment before the first meeting. Sometimes it is desired that we first get an insight into the appointment, which we respect of course, but please understand that we cannot give an initial assessment in advance.
Tip: we will receive the annual financial statements for the past three years and a current BWA. As a rule, you will also receive this in digital form as a pdf from your tax advisor.
In the appointment we discuss how a timetable could look in principle and numerous options. Afterwards, if you would like to get together, you will receive a contract from us, which you can read at your leisure and have enough time to ask questions. As soon as we have received the contract from you, we will go about the actual work.
We carry out a company valuation and examine the possible purchase prices with regard to different buyers. We then prepare a detailed sales exposé, which forms the basis for the contract negotiations. Together with you, we define a strategy.
We process all enquiries from interested parties, sound out the seriousness of the matter, start negotiations in close consultation with you and arrange appointments. This whole process is accompanied professionally from the beginning, your anonymity is maintained for the time being and you reduce your workload to a minimum.
During the negotiations, everyone “sits in the same boat”. Of course, we can only represent one side at a time. This does not mean that we are willing to examine the documents of the prospective buyer and support him in financing his takeover project. This gives us the best possible overview of the overall situation and enables us to react quickly and flexibly to any problems that may arise.
At a later point in time, when an agreement has been reached regarding the sale, we coordinate the drafting of the sales contract for you, either with your lawyer or, if you wish, we can make recommendations. Here you will find all information on