Industry: Consumer / Services
Transaction: Sale to Strategic Buyer


Vacation Rentals by Owner ("VRBO") operates VRBO.com, an online directory of more than 65,000 vacation rental properties located on six continents. Individuals list their rental properties on VRBO.com in exchange for an annual listing fee. Founded in Colorado in 1995, VRBO now is based in the US Virgin Islands.

VRBO's owner was seeking to diversify his net worth and to improve VRBO's competitive positioning. Over the course of several years, he had been approached by the owners of an acquisitive competitor, HomeAway, Inc., regarding selling VRBO. GMB was retained as VRBO's exclusive advisor in assessing and negotiating the sale of the VRBO to HomeAway.

GMB assisted in negotiating the letter of intent and purchase agreements and in structuring a complex preferred employee ownership position in the combined company. As a result of the transaction, VRBO's founder received a cash distribution. He made a substantial investment in the combined entity, thereby retaining a significant ownership position.

Equity financing for the transaction was led by Austin Ventures and Redpoint Partners. Additional financing was provided by Trident Capital, American Capital Strategies and Institutional Venture Partners.

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