Generational Wealth and Equity

The Staffing Firm’s Story
After 30 years at Shell, the last five as manager of contract staffing, the client’s founder decided to take an early retirement option and pursue his dream of starting his own company. In 2000 he founded a staffing firm that filled the niche of third party payroll staffing, with seven contractors. Seven years later, his company had grown to almost 70 contractors.

When the client decided to start exploring the sale of his business, he knew that the firm occupied a narrow area of the industry. That meant he would need a thorough evaluation to determine if there was a market for the company and if a sale would be an appropriate decision.

Closing the Sale
The client attended a Generational Wealth & Equity seminar where he learned a considerable amount about the process of selling a business, but he still wasn’t ready to make a decision. So the client asked Generational Wealth & Equity to perform a market valuation of the business to see what it might be worth. After receiving the valuation, he realized there was a real opportunity in the market for the agency.

The client went to market in August 2006. Generational Wealth & Equity broadly marketed the company to a variety of potential buyers. The portfolio Generational Wealth & Equity assembled to market the staffing agency was top quality and helped attract the interest of a deep pool of potential buyers.

During the next several months, the client met with several interested buyers and received offers from most of them. Generational Wealth & Equity provided expert, strategic counsel in determining which offer to take and in negotiating the sale.

“Everyone I worked with at Generational Wealth & Equity was an expert in their area. They were helpful and responsive every step of the way,” the client says. “They made me feel like I was their only customer, and I was really impressed when the buyers told me that they too were struck with the professionalism, expertise and level of service of Generational Wealth & Equity’s staff.

When the seller ultimately accepted an offer, he still had inquiries coming in. The sale of the staffing agency closed in July 2007, almost exactly one year to the date of entering the market.

During the sale of his company, the client learned just how critical selecting the right M&A firm is to the sales process. Generational Wealth & Equity guided him through the process, helped him set expectations and assisted with strategic decisions. “I would tell anyone considering selling their business to be sure to choose an M&A firm that is responsive, has relationships with a broad network of potential buyers and is able to market the company nationally or even globally,” he says. “I would certainly recommend Generational Wealth & Equity to other business owners looking to sell.”

The La Tours & Cruises Story
Twenty years ago, Ray Schutter and his wife started a full service travel agency dedicated to upscale, international travel. Eventually, Schutter’s company, La Tours & Cruises, grew to several million dollars per year in sales and employed 10 more people.

As Schutter approached retirement age, he began to think about selling the company. However, knowing that service-based companies can sometimes be challenging to sell, Schutter worried that limiting his options to a Houston-based buyer would compound the challenge, so he sought to market the company widely.

Generational Wealth & Equity – Leveraging Its Broad Reach
Schutter went to a Generational Wealth & Equity seminar and was impressed by the company’s expertise, experience and access to buyers. He decided to enlist Generational Wealth & Equity’s help in putting his company up for sale.

Generational Wealth & Equity performed a valuation of La Tours & Cruises. Schutter says the valuation really helped him get ready for the sale. “It galvanized me to get my company and my books in order,” he says. Soon, Schutter was evaluating and organizing the company’s financial history, demographic studies, and other information that would be important to a potential buyer. Generational Wealth & Equity also prepared comprehensive marketing materials to present the company to a variety of buyers. “The materials Generational Wealth & Equity prepared definitely helped me present my company in a powerful way,” says Schutter.

Generational Wealth & Equity’s broad reach helped open up many possibilities for the sale of La Tours & Cruises. Generational Wealth & Equity’s recommendations for preparing the business for sale and its extensive marketing to potential buyers were the cornerstones for the successful sale.

Within one year of putting his company on the market, Schutter got an offer. After three months of negotiations, the sale was completed. A larger travel business, which had recently acquired another Houston-area travel company, purchased La Tours & Cruises and strategically merged the two companies. As part of the deal, Schutter will continue to be involved in La Tours & Cruises for three years as both companies are integrated into the parent company.

“Anyone looking to sell their business needs to get organized to maximize the sale,” Schutter says. “Generational Wealth & Equity helped me get organized. They provided a good value. Without their services, I wouldn’t have received the offer I did for my company. Working with them really paid off.”

The BluBlocker Corporation Story
In 1986, Joe Sugarman, founder of the BluBlocker® Corporation, was driving down I-405 in Los Angeles with a friend, squinting into the sunlight. His friend lent him a pair of sunglasses, which were at the time manufactured only for NASA. The sunglasses were so unusual that Sugarman immediately saw the market opportunity to build a brand around them. Soon Sugarman was selling BluBlocker sunglasses throughout the world.

After 20 successful years in business, Sugarman was approached by firms interested in buying his company. He retained an M&A firm and hired the company to negotiate for him. But after a period of not seeing any results, he attended a Generational Wealth & Equity seminar to learn more about positioning BluBlocker Corporation for the best sale possible.

Achieving Strategic Growth Objectives
At the seminar, Sugarman learned about positioning his company for a sale and about the key qualities buyers look for. Based on his experience at the seminar, he decided to move forward with Generational Wealth & Equity.

Generational Wealth & Equity visited BluBlocker and provided a thorough analysis of the company. “They provided really excellent advice; it was right on the button,” Sugarman says. After the evaluation was complete, Generational Wealth & Equity recommended that Sugarman focus on implementing strategic changes to the business to make it more attractive for a sale—for example, broadening the company’s distribution network.

Sugarman put the thought of selling his company on hold. He decided to dedicate that time to reposition BluBlocker, introduce new products, and expand distribution. Sugarman is currently focusing on retaining new clients and building the company’s technology infrastructure.

As Sugarman works to build the company, he may not be actively pursuing a sale, but he’s positive about his experiences. “I’ve learned so much,” he says. He also continues to consult Generational Wealth & Equity for advice on building his business and the possibility of a sale in the future.

“Generational Wealth & Equity has provided excellent advice and told me everything I needed to know about selling a business, as well as some things about how a business is valued,” Sugarman says.

Understanding his options has been critical. Generational Wealth & Equity has been a source of expert information and counsel. “Their staff demonstrates caring, professionalism and a great attitude in everything they do,” Sugarman says. “I care about Generational Wealth & Equity, because they care about me and my business. I’m delighted to let people know how pleased we have been with them.”