Get the umbrella out before it rains.
So often in the merger and acquisitions arena we hear from owners when asked if they would consider selling “sell now? I am not ready,” or “I am going to hold out and hope for the best”. I know the positive mentality of the entrepreneurs out there the always conquer never fail we can succeed that has made small business great. I love those people and the energy they carry around with them but, there comes a time when you must play the hand that’s dealt. More often today when I talk to the very people who would say the same things above, are now saying “I should have sold” or “I am ready to get out” not a year down the road. I call it the Yahoo factor.
The yahoo factor. When Microsoft made their final offer for $47.5 billion or $33 dollars a share yahoo played games and refused to sell, as of today there stock price sits at $17.42 a share. Ask any of the still standing board members if they should have sold. That’s what I call the yahoo factor.
Given the climate of today’s market we need to, as business owners, seriously assess the realistic terms of our current and near future. I was told once when it comes to a big business decision think about how it will affect my business 12 weeks 12 months and 12 years from now based on a realistic assessment of my current financial standings. I am not saying that every offer on the table is the wise decision but look at it based on a clear assessment of your current financials. So often we get our hearts tied into the business and we allow the passion and pain to persuade our judgment. When we finally take off the rose colored glasses we are met with a sense doom followed by a time to get off the ride reaction. Unfortunately selling a business is not like selling the house or the car. The strongest thing that you own, your report card so to speak is your financials. Buyers will give you a pass or fail based on those numbers. Pass you make a wise financial transaction that allows you to make more money over the next couple years than if you would have if you continued to own the business. Fail you waited too long and now the business isn’t very interesting to active buyers.
If it’s sunny now but there are storm clouds on the horizon get the umbrella out is what I am saying. Any buyer will look at your financials and projected growth for your company. The buyer will pay based on the risk and the reward of his investment. He has to be able to see both of those for him to justify the acquisition of your travel business.
Tags: Buying Travel, Buying Travel Business, Travel, Travel Agency News, Travel Industry, Travel Industry Outlook
July 24th, 2009 at 10:02 am
Everything dynamic and very positively!
Have a nice day
AlexAxe
July 28th, 2009 at 8:24 am
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August 3rd, 2009 at 1:58 am
I added your blog to bookmarks. And i’ll read your articles more often!
August 3rd, 2009 at 10:00 am
Great information. It’s really useful. Thanks
August 3rd, 2009 at 8:07 pm
Michael, a very interesting post thanks for writing it!
August 5th, 2009 at 6:42 pm
Amazing news, thank you!
August 8th, 2009 at 12:52 pm
OMG…totally!
August 9th, 2009 at 5:42 am
Thank you very much for that splendid article
September 19th, 2009 at 7:40 pm
thanks !! very helpful post!
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found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later ..
September 20th, 2009 at 3:24 pm
ohhh nice info
September 20th, 2009 at 4:38 pm
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September 20th, 2009 at 4:43 pm
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September 20th, 2009 at 7:02 pm
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October 3rd, 2009 at 8:28 am
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October 7th, 2009 at 2:56 am
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October 9th, 2009 at 3:59 am
Maki…as always, great post here.
October 14th, 2009 at 4:17 pm
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October 17th, 2009 at 12:26 pm
In truth, immediately i didn’t understand the essence. But after re-reading all at once became clear.
October 22nd, 2009 at 3:05 am
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October 24th, 2009 at 5:33 am
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October 25th, 2009 at 2:16 am
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November 6th, 2009 at 2:26 am
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November 25th, 2009 at 1:35 am
You made some good points on this subject.
January 6th, 2010 at 8:57 pm
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