THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Johnson Corporate’s client was an Educational Tour business, which had been operating for over 30 years in the travel and tourism industry. Trekset Tours specialised in providing tour services for Australian schools – both government and private. Its offer covered customisable turnkey tours to domestic and international destinations, including Australian snowfields.
Established in 1979, the Business was built on the ethos that it wanted to improve overall service to the school-group market and make children feel like first class tourists. By the time of sale, Trekset Tours enjoyed the number one position in the domestic school-group tourism market in Victoria and Tasmania and had experienced growing dominance in the international market for school-group tours. The Business was generating $23 million in annual revenues (and $20 million in forward bookings) and employed approximately 24 long-standing and highly experienced staff as well as 30 seasonal employees. In 2013 the owners decided to exit by way of sale to a third party in order to pursue retirement plans. They engaged Johnsons Corporate as specialist mid-market business brokers to manage their international divestment campaign.
The International Sales Strategy
Trekset Tours presented a well-honed and proven business model whose success was attributed to factors including price competitiveness, strategic supplier agreements, school buying processes and renowned tour quality. Most importantly the business model ensured predictable revenue streams locked in 6-12 months in advance of service delivery. This acquisition opportunity offered potential purchasers an immediate solid revenue platform as well as a plethora of options to enjoy future growth – leveraging the brand into extended geographic markets and/or tour categories.
Johnsons Corporate’s custom research & marketing focused on European & US Educational Tour & Travel operators as a primary segment, while secondary segments included European & US General Tour & Travel operators. Johnsons ran a proactive direct marketing campaign that uncovered 4 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 4 weeks of going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The International Trade Buyer
The purchaser, WorldStrides, is a private equity backed, global educational & tour business with annual revenues of approximately $300M. It is the US’s largest and most respected accredited travel organisation, helping over 300,000 students from over 5,000 schools travel each year to destinations in more than 90 countries.
What Our Client Had to Say
"From the initial research of international targets right through to the final negotiations with the US-based buyer, the team at Johnsons Corporate provided a level of professionalism and service that resulted in a well-managed process and a highly successful transaction."John Deveson, Director - Trekset Tours