Travel professionals looking to sell their businesses, or acquire another, have been told to think carefully about how long they would ideally like and anticipate the process to take – and then double it.
Simpson Travel managing director Ed Pyke told Barclays Travel Forum delegates on Wednesday (9 May) it took the villa specialist two years to find an investor and then complete the sale of an undisclosed stake in the business, eventually inking a deal with private equity firm Risk Capital Partners in March.
Founded in 2002 by actor-turned-tour-operator Graham Simpson, who previously set up and ran Simply Travel before selling it to Thomson Holidays – now Tui – in 1999 for £30 million, Simpson Travel has now successfully transitioned from a family-owned business to an investor-owned proposition.
The deal saw Pyke promoted to the role of managing director, with former Hotelplan chief Paul Carter coming in to replace Simpson as chair. He remains involved with the business in an advisory capacity, while his children Mathew, Daniel and Hannah have retained their roles as product director, commercial director and head of trade sales.
Pyke told delegates the key to successful mergers and acquisitions was to surround yourself with a strong group of advisors, especially with regards to corporate finance. “I spoke to him [Simpson’s corporate finance expert] every day for a year without fail," said Pyke. "But it brought us through to the other end."
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