Episode 27
When Should I Start Planning My Exit, and What Will I Get for My Outfit? with Pat Tabor
Just because you're not ready to retire doesn't mean you shouldn't plan to.
Start planning your exit long before you're ready to sell.
In this episode of the Tour Operator Growth Podcast, Nikki and Greg talk exit and transition planning with Pat Tabor, founder of Swan Mountain Outfitters and Swan Mountain Consulting Group. Pat spent nearly 30 years at consulting firm RSM, where he led their national transition and advisory practice and completed close to 500 business valuations, then bought, ran, and handed down his own outfitting business to his kids. He makes the case that even if you have no plans to sell for ten years, now is the time to start planning, because the best outcomes come from work you begin early.
Pat walks through the business life cycle and why different parts of your company can sit in different stages at once. He explains what buyers actually value, from leadership and financials to how turnkey your technology is, and why outdated tech gets a seller penalized at the negotiating table. He digs into the human side most people forget: planning for the owner, not just the business, and why 70 to 80% of family successions fail when emotions and honest conversations are ignored. His one piece of advice for every operator: start planning now and build a team of truth tellers around you.
Connect with Pat:
swanmountainconsulting.com
Frequently Asked Questions
-
Why should I care about exit planning if I'm not selling soon?
Because just because you're not ready to retire doesn't mean you shouldn't plan to. Every business reaches an eventual conclusion, and the best outcomes come from planning years in advance, not when you're ready to get out.
-
What is the business life cycle?
The classic stages of startup, growth, maturity, and exit. Different parts of your company, like operations versus marketing, can be in different stages at once, which is why it helps to know where each one stands.
-
What do buyers actually value in a tour business?
Brand, leadership and management, planning, financial structure, infrastructure, people, operations, and increasingly, how turnkey your technology is. Strong, integrated systems earn higher valuations.
-
How does outdated technology affect my valuation?
Buyers penalize sellers whose technology is behind, because they know they'll have to invest to bring it up to standard on top of the purchase price. Modern, integrated tools make you a more attractive target.
-
What does "planning the transition but forgetting the owner" mean?
Owners focus so much on the business that they overlook their own financial and emotional needs and what comes next. Pat encourages thinking about your "15 summers" and what you'll actually do when you step away.
-
Why do so many family successions fail?
Around 70 to 80% fail because they aren't planned properly and families aren't honest about whether the next generation actually wants the business. A good process surfaces that before a costly mistake is made.
-
Are younger owners holding businesses for less time?
Yes. Each generation tends to hold a business for a shorter period, with millennials often exiting in a five-to-ten-year window, sometimes after growing the business and cashing out at a much higher valuation.
-
What's Pat's number one piece of advice?
Start planning now and form a team of truth tellers, people with real skills and experience who will tell you the truth about your life and your company, rather than friends or advisors who won't offend you.