© Greg Geronemus / ETA Street montage
In 2012, Greg Geronemus and his business partner, David Rosner, were Harvard Business School graduates seeking to acquire a business. They had the pedigree with experience from Goldman Sachs and private equity, but they lacked operational chops. They focused their search on the tri-state area (NY, NJ, CT) to accommodate their wives' careers.
After months of high-volume email and networking, a chance encounter at a BDO happy hour led Geronemus to an accountant representing a travel company owner who was looking to sell. The accountant sketched a deal structure on a piece of paper that seemed too good to be true: a 5x EBITDA valuation with a 60% seller note.
The business was SmarTours, a value-oriented tour operator based in Midtown Manhattan. Three years after Geronomus’ exit, the business was hit by the COVID-19 pandemic. It eventually went bankrupt last year, and its IP was acquired by UpNext Group.
The “SmarTours” Deal
SmarTours was a classic search fund target:
Revenue: ~$30 million.
EBITDA: ~$5 million.
Team: Only 7 employees, including the founder.
Model: Negative working capital (customers pay upfront, vendors paid later).
Despite the attractive financials, the business had massive "key person risk." The founder was involved in everything. Geronemus and Rosner saw an opportunity to professionalize the business, mitigate that risk, and scale.
The Acquisition Structure
The team acquired the business in 2013 (one year after the search) under the following structure:
Purchase Price: ~$29 million (approx. 5-6x EBITDA).
Seller Note: ~50% of the purchase price (a massive vote of confidence from the seller).
Equity: ~$10 million raised from investors.
Debt: ~$5 million from an SBA lender.
Professionalization over "Betting the Farm"
Once in the CEO seat, Geronemus and Rosner focused on de-risking rather than hyper-growth. They didn't want to "bet the farm" on a J-curve strategy that burned cash.
Instead, they focused on:
Human Capital: Expanding the team from 7 to ~25 employees to remove the founder's dependency.
Technology: Moving from pen-and-paper operations to a modern software system.
Marketing: They attempted digital marketing (paid search/social) but found it ineffective given the product's high-ticket, high-trust nature. They pivoted to direct mail (catalogs) and a B2B2C strategy (selling through universities and alumni groups), which proved highly successful.
Their tenure was not without challenges. They navigated geopolitical crises (Russia/Ukraine 2014), health scares (Ebola, Zika), and terrorism in Europe, all of which impacted travel demand. Yet, the business remained resilient.
Selling at the Top
By 2017, smarTours had grown to nearly $50 million in revenue and $7.5 million in EBITDA. The partners received unsolicited offers and decided to run a process.
They sold the business to Summit Park, a private equity firm, for $67.5 million (9x EBITDA).
Investor Return: ~$62.5 million in proceeds on ~$10 million equity invested, plus ~$4 million in prior dividends.
Debt: Paid down from $19.5 million to ~$4 million during their hold period.
The timing was great. They closed the sale in 2017, and three years later, COVID-19 almost decimated the travel industry. The private equity firm that acquired SmarTours ultimately filed for Chapter 11 bankruptcy, and the business shut down in early 2025.
"You can play it safe and still generate an excellent return."
Footbridge Partners
Today, Geronemus is the Managing Partner of Footbridge Partners, a search fund investor. He backs 2-4 searchers per year, taking a high-touch, operational role. Footbridge currently has a portfolio of 10-12 companies, including several in the travel space, proving that despite the risks, the tour operator model remains a lucrative target for the right operator.
