Due Diligence Travel Agency Acquisition Process
Research Travel Agency Acquisition Process
The research review (DDR) is really a critical area of the travel agency acquisition process.
You will find five key objectives:
1. Identify deal-breakers, which, if conflicting could preclude going after the transaction any more:
Company personnel engaged with conflicting, outdoors interests
Financial obligations – employment contracts, rents from previous purchases, liens, etc.
Legal/Regulating issues- legal cases, client complaints
- Quality of labor
- Questionable accounting
- Questionable costs
2. Verify representations received in the seller, for example key presumptions made about employees, compensation, systems, key statistics.
3. Get yourself a more in depth knowledge of the company:
Kinds of clients
Business mix
Causes of revenue
4. Obtain information vital to settling the transaction:
Salary and benefit information for workers
Inventory of furniture and equipment
Inventory laptop or computer systems and software
5. Identify potential transition problem or regions of focus:
Compensation and benefit issues
Technical and workflow process issues
Other
The DDR is made to profit the Research Manager (DDM) in effectively planning, performing, and looking at the planned transaction. Carrying out a standardized DDR is crucial towards the effective completing the review and can make sure that:
A regular approach can be used by all research team (DDT),
A typical output (format) is produced for every DDR, and
The duplication of knowledge collected or asked for from the proprietors is removed.
The DDM accounts for the general planning and final overview of all work and the introduction of the ultimate report.
PHASE I: Meeting/business call with Deal Owner, Acquisition Manager and DDM
Goals:
Communicate overall vision and means of the DDR.
Share information that was already acquired to get rid of the duplication of information- gathering efforts.
Identify DDT people.
Confirming: Recap the discussion/choices and supply a duplicate to every party.
PHASE II: Meeting/business call with Acquisition Leader, DDM and DDT People
Goals:
Share new information.
Review the requirement for discretion with acquired firm contacts and exterior sources (i.e., media).
PHRASE III: Ending up in DDM and Firm Owner and/or Primary Contact
Goals:
Evaluate the DDR.
Supply the listing of products the firm will have to produce.
Confirming: The DDM will complete the recap of every call.
PHRASE IV: Data gathering process starts using the DDM, Team People, and Firm Owner & Contacts
Goals:
Complete the research data gathering (DDM, Firm owner/firm department contact).
Complete the “Summary Report” memo (support team member).
PHRASE V: The DDM completes the ultimate Report and offers it towards the Deal Owner and Acquisition Leader.
