Due Diligence Travel Agency Acquisition Process
The due diligence review (DDR) is a vital area of the travel bureau acquisition procedure.
There are five Important goals:
1. Identify deal-breakers, which, if unresolved could preclude chasing the trade any further:
• Company employees engaged with contradictory, external interests
• Financial obligations – job contracts, leases from prior exemptions, acquisitions, etc..
• Legal/Regulatory problems – suits, customer complaints
– Quality of work
– Questionable accounting
– Questionable expenditures
2. Verify representations obtained from the vendor, such as crucial assumptions made about workers, reimbursement, systems, key figures.
3. Obtain a more detailed Comprehension of the company:
• Kinds of customers
• Business mix
• Sources of earnings
4. Get information crucial to negotiating the trade:
• Wages and benefit information for workers
• Inventory of furniture and gear
• Inventory of computer programs and applications
5. Identify possible transition issue or Regions of attention:
• Compensation and benefit Problems
• Technical and workflow procedure Problems
The DDR is intended to help the Due Diligence Manager (DDM) in effectively planning, executing, and reviewing the projected trade. After a standardized DDR is Essential to the successful conclusion of this review and will make sure:
• A consistent approach is used by all due diligence staff (DDT),
• A Normal output (structure ) is made for every DDR, and
• The amount of data gathered or asked of those owners is removed.
The DDM is accountable for the entire planning and final inspection of work and also the growth of the last report.
PHASE I: Meeting/conference telephone with Deal Owner, Acquisition Manager and DDM
• Communicate entire vision and plan of the DDR.
• Chat information which is already got to eliminate the duplication of information – collecting efforts.
• Identify DDT members.
Reporting: Recap the discussion/decisions and supply a copy to each party.
PHASE II: Meeting/conference telephone with Acquisition Leader, DDM and DDT Members
• Share new info.
• Review the requirement for confidentiality with obtained firm contacts and outside resources (i.e., media).
PHRASE III: Meeting with DDM and Business Owner or Main Contact
• Inspection the DDR.
• supply the list of things that the company will have to create.
Reporting: The DDM will finish the recap of every telephone.
PHRASE IV: Information gathering process starts with the DDM, Team Members, and Business Owner & Contacts
• finish the due diligence information collecting (DDM, Business owner/firm department touch ).
• finish the”Summary Report” Court (support staff member).
PHRASE V: The DDM completes the Final Report and supplies it to the Deal Owner and Acquisition Leader.