Acquiring Minds Buy Well, Exit Better: A $67m Win in 4 Years
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Nov 17, 2025 Greg Geronemus, former co-CEO of Smart Tours and now a managing partner at Footbridge Partners, shares his journey in acquiring a profitable travel business. He discusses the unique challenges of searching in the competitive New York market and the innovative strategies used for outreach. Geronemus reveals how partnering with universities boosted growth and why direct mail proved to be more effective than digital marketing. He shares insights into the sale process, achieving a remarkable 9x EBITDA return, and highlights key lessons in acquisition discipline and risk management.
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Tour Operators' Cash Advantage
- Tour operators offer exceptional cash-flow because customers prepay and payouts occur much later.
- That cash profile plus fragmentation creates a strong buy-and-improve opportunity for operators.
Mitigate Key-Person Risk With Seller Skin
- Evaluate key-person risk honestly and require seller skin in the game if risk is high.
- Use seller notes, equity rollover, or earnouts to bridge transition and align incentives.
How The Smart Tours Buy Was Financed
- The final purchase price was about $29M with a 50% seller note, $5M SBIC debt and $10M equity.
- An SBIC lender (Tamarix/RF Partners) provided flexible capital senior to the seller note.