The Clients

Grand Street Gardens, LLC (GSG) is a garden center at 2200 W. Grand Street in Chicago that occupies seven city lots. It was founded in 2003 by John Payne who also owned a photo studio nearby. John had seen that the immediate and surrounding neighborhoods lacked a garden center and perceived a market need. While GSG revenue grew steadily in its first few years, its financial performance was below the owner's expectations. John's family lived in Seattle WA and he was commuting back and forth to manage his two Chicago businesses. In 2007, he decided it was time for a change in lifestyle.

The Assignment
Once John had reached his decision to pursue an exit strategy, he researched business brokers on-line and interviewed several. He appreciated the structure and professional approach offered by Joseph Associates International, Inc (JAI) and engaged us for a third-party valuation.

The Results

The third-party valuation process was initiated in October 2007. The report was completed in November 2007 and JAI was subsequently engaged to sell the business. A key marketing decision is the identification of target buyer groups. GSG had potential appeal to both first-time and strategic buyers. A dual marketing strategy was employed in order to attract candidates from each buyer pool. The normal advertising for first-time buyers was supplemented with direct mailings to landscaping and other types of firms that might potentially benefit from an acquisition of GSG. One serious offer emerged from each buyer category.

As of October 27th 2008, GSG is part of Christy Webber Landscapes. In 1988, Christy Webber bought an old pickup truck and some lawn mowing equipment and began cutting grass around Chicago's Wicker Park neighborhood. In the 20 years since, she has grown Christy Webber Landscapes into one of the largest landscape contractor firms in Chicago, with more than 250 employees and an impressive fleet of trucks and equipment. GSG filled multiple needs. There were obvious synergies in acquiring a well-located retail outlet.

Professionals Involved:
- JAI Lead Broker: Ken McCaul - Seller’s Attorney: William Price
- JAI Accountant: John Lafferty
- Buyer's attorney: Mike Roberts

The Client

Association Partners, Inc. (AP) was founded in 1997 by Mark Gehl shortly after a successful run in Corporate America. As a civic minded person, he became involved in his homeowner's association. Before long, he realized that there was a market opportunity in property management. Mark believed that the property manager should have a much broader vision than is often the case. The property management firm should be working toward increasing property values as their primary objective. The details of snow removal and lawn mowing were to him, minor aspects that must be properly executed as part of a larger plan. Surprisingly, the prevailing industry mindset is to simply execute the tasks.

Mark's business and family were growing concurrently. He was becoming increasingly dissatisfied with the trade-offs. The eventual decision was to sell the business in order to free up time for his avocation of working with the Boy Scouts of America.

The Assignment

As is often the case, the owner attempted to market the business on his own before contacting Joseph Associates International, Inc. (JAI). He experienced the usual problems such as knowing the true value of the business and dealing with industry buyers while attempting to protect confidentiality. Somewhat battered and bruised from his experience, Mark turned to JAI for professional help.

The Results

The first step in our brokerage process is a third-party valuation. Once our CPA learned more about AP, it became clear that this firm clearly out-performs its peer group. We documented that by upgrading our report from limited scope to comprehensive in order to include that peer group comparison. This direct comparison against RMA data for the property management industry enhanced value, marketability and our subsequent ability to attract financing.

JAI's BizTourTM allowed prospective buyers to meet the owner virtually through streaming video. There were no site visits prior to the execution of the Letter of Intent. This eliminated a major concern about maintaining confidentiality as the employees often pass by or stop at the office during off-hours.

AP's new owner is Curtis Walker. He is a former banking executive from JP Morgan Chase. His avocation is rehabbing residential rental property. This first-hand involvement in property management led him to much the same idea as Mark Gehl's 1997 epiphany. Curtis had actually crafted a business plan for a start-up when he noticed our ad for AP. The sale closed on December 7th with financing arranged through Fifth Third Bank and Community South Bank.

The Client

Jeanne Hoesley was the owner and president of Lisle Mail & Business Services, Inc. Her business provided fulfillment of direct mailing services such as stuffing, labeling, applying postage, etc. Her retail location on Lisle IL's busy Ogden Avenue (US Rte. 34) was well chosen as it literally delivered customers to her doorstep. After ten years of success as an owner, she and her husband John wished to retire.

The Hoesley's son John is a principal of Prism Capital and a member of Midwest Business Brokers and Intermediaries. His parents asked him to find a broker to help them sell their firm. He directed them to Joseph Associates International, Inc. (JAI) upon the recommendation of Bill Wiersema CPA, a principal in the Northbrook accounting firm of Miller Cooper & Co. Ltd.

The Assignment

This business was an ideal entree into entrepreneurship for a first-time buyer. It was also a potential add-on for a printer or sign shop that could take advantage of the potential synergies available through cross-selling or vertical integration. JAI pursued a dual marketing approach. Ads were posted to attract first-time buyers while simultaneously approaching over 550 targeted firms in related industries by mailing them blind profiles of the business.

JAI's BizTourTM marketing technique was used to great effect. The Biz TourTM supplements traditional documentation with streaming video clips delivered through a secure area of the JAI website. The videos featured a walking tour of the facilities and interviews with the owners. Prospective buyers benefited from the richness of information and instantaneous delivery upon qualification. The sellers were spared countless visits from tire-kickers who would not be ready to express serious interest without complete information. During the marketing phase, 54 confidentiality agreements were signed by interested buyers. The Biz TourTM method limited the initial buyer site visits to five serious candidates thereby limiting distractions for the owners and better protecting their confidentiality. Traditional book & spreadsheet marketing packages typically require twenty site visits to sell a business such as this one.

The Results

The eventual buyer of the Lisle Mail & Business Services was a first-time buyer, Mr. Dan Sepke. The transaction closed on May 8th, precisely nine months after the execution of the listing agreement. The Hoesleys are thrilled to begin their retirement following the transition period. They are also very comfortable knowing their loyal customers will be in Mr. Sepke's capable hands.

The Client

Jim Butler had directed franchising operations for Wendy's before deciding to start his own business. He had learned the power of the franchising concept first hand. Franchises strive for absolute consistency in operations. They achieve it by following a clear plan that is effectively communicated to its staff. While searching for a franchise to acquire, he had an epiphany reading a book. He read a one sentence plan that stated exactly how to clean a room. He ended his search for a franchise and founded Butler Domestic Services, Inc. in 1992. This one sentence became the mantra for Jim and his employees.

Butler Domestic Services, Inc. started with an initial focus on residential home cleaning services. Jim experienced more success in working with home builders and the direction shifted accordingly. Over the years, the business grew to its current staffing level of 50 employees. The customer list is a Who's Who of nationally known builders.

The Assignment

The business had established a long history of continuous growth and profitability. Jim had decided that if the business could be sold for a high enough price, he would like to transition into a less personally demanding life-style type business. He approached Joseph Associates International, Inc. (JAI) to determine the fair market value of his company through preparation of a third-party valuation. Upon receiving the completed report, he said he was "stunned". The value was substantially higher than he thought. He signed a listing agreement and challenged us to materialize the stated value.

The Results

Ed and Jackie Crowe were referred to JAI by Harris Bank's vice president, Roger Schnorr. They wanted to buy a business. Ed had started with Illinois Bell driving trucks and carrying a union card. After completing his degree at the University of Illinois, he worked his way up to Director of Sales and Operations Planning within SBC's Midwest region. Jackie is a graduate of DePaul University. She had been an auditor for the USDA before putting her career on hold to be a mom.

Both Ed and Jackie completed JAI's Credentialing® process and subsequently attended the "How to Buy a Business Seminar" held in May. They then opted for a Wolf PackTM search. The search process yielded multiple opportunities. The first resulted in a term sheet; the second in a Letter of Intent. Neither deal went to fruition as both owners perceived a higher value than our analysis could support. Disappointing interim financials were a factor in both cases.

The collapse of the second deal followed closely after the execution of JAI's listing agreement with Jim Butler. Ed and Jackie were immediately introduced to Jim over pizza and they agreed to move forward with a deal. Their decision to join the Wolf PackTM positioned them to be the only buyers who ever got to see this opportunity. A positive surprise in business performance was addressed with an updated valuation report that was used to support the financing proposal.

SBA financing was arranged through Mary Los of Fifth Third Bank, a JAI seminar sponsor. Ed and Jackie received legal assistance from Bill Wentz, Markus May and Leonard Fischer. Accounting due diligence was performed by Bill Wiersema of Miller, Cooper & Co., Ltd. All these professionals are regular presenters at JAI's "How to Buy a Business" seminar. Mary Los was supported by Bob Vallandingham and Joe Finnegan from Fifth Third's Aurora offices. They are both seminar "alumni".

The Client
Praxis Illinois Inc. was created and grown around the idea of a better blade for grinding tree stumps. The concept expanded to manufacturing the stump grinding machines. The value of the improved blade design was reinforced through successful patent filings in the United States and overseas. Bob Hooser and his brother Steve developed the business into a size that justified moving into a 25,000 ft2 facility in DeKalb.  The brothers had begun this enterprise at a relatively young age. Both eventually elected to pursue other interests. Bob decided to sell about a year after purchasing his brother’s shares in the company so that he could focus his attention towards real estate development.

The Assignment
The business was established in 1992 and grew rapidly until plateauing ten years later. The manufacturing process was well established as that was Bob’s real strength. He recognized that sales and marketing would be the key to the next level of success. Bob concluded that he would rather pursue his dream of real estate development than attempt to step out of his strong suit of manufacturing into his weak suit of sales and marketing.

The Results
Jim Cornelius was referred to JAI by Bill Wiersema, a senior partner in the Northbrook based accounting firm of Miller Cooper & Co. Ltd. Jim holds an accounting degree from DePaul University and amassed nearly twenty years of experience in the corporate world. His work assignments were primarily focused in the manufacturing sector where achieved the position of Chief Financial Officer for a Swiss owned firm.  Jim signed up for JAI's Credentialing® process in June 2005. The program includes our "How to Buy a Business Seminar" in both live and DVD formats. Armed with his new-found knowledge, Jim set out to find a business to buy. He was quick to respond when Praxis Illinois, Inc. went on the market.

Bob Hooser chose Markus May as his attorney. Markus is an MBBI member and presenter at the JAI "How to Buy a Business Seminar". SBA financing was arranged through Mike Jannusch of Amcore Bank in Naperville. Mike is an active member of the Naperville Chamber of Commerce and can usually be found at its meetings of the Young Professionals Network.

Joseph Associates International was able to utilize a number of its unique capabilities to promote this opportunity to both active and passive potential buyers. In order to ensure the owner would receive the full market value for his company, JAI contacted over 500 companies throughout the midwest in addition to using the more traditional promotional methods. Additionally, JAI filmed, produced and made available in streaming web format over 30 minutes of video that detailed the entire Praxis Illinois product line, provided a walking tour of the production facility and concluded with a comprehensive interview with the owner. Click here for a short example of one of the videos in low resolution. Providing this information in video format is essential in making sure that the buyers are being presented with the most useful and compelling information possible. Click here for the full press release.

The Client

In 1992, Betty Becker purchased the Huntington Learning Center located in River Forest IL. During her tenure as owner, she grew this business into one of the top performing franchisees among the more than 200 centers nationwide.

The Assignment

Betty had decided that it was time for her to retire. She initially attempted to market the business on her own with no success. As is often the case with for-sale-by-owner, she experienced problems relating to confidentiality, non-compete and business valuation. On the advice of her attorney, Bill Wentz, Betty engaged Joseph Associates International, Inc. (JAI) to prepare a third party valuation for her firm. Following the presentation of the report in late February, she decided to list her business for sale with JAI. The valuation report was used to obtain financing term sheets from several lenders while the marketing documentation and videos were being prepared.

The Results

Rob Hauck (Oak Park, IL) had decided upon purchasing a franchise following a successful career in the corporate world. He holds and MBA in Marketing from the Boston University School of Management and was intent on using his skills for his own account. Rob’s initial research at a franchising trade show introduced him to Huntington Learning Centers. The franchisor then qualified him as a buyer and referred him to us concurrently with Betty’s listing decision.

Upon contact with JAI, Rob was re-qualified and provided the documentation available at that time. He submitted a Letter of Intent and the deal closed without ever going officially to market. Rob was invited to participate in the JAI Credentialing® process and subsequently attended the “How to Buy a Business Seminar” held in May. Financing was arranged through Mary Los of Fifth Third Bank, the seminar sponsor.

The sale team members were:

Joe McCaul - lead broker, Joseph Associates International, Inc.

John Lafferty – lead transaction accountant, CFO-Pro

Bill Wentz – seller transaction attorney, Fewkes, Wentz & Strayer

Betty Becker is now happily retired following a post-sale transition employment period during which time Rob received training from the franchisor.

The acquisition team members were:

Joe McCaul - lead broker, Joseph Associates International, Inc.

John Lafferty – lead accountant, CFO-Pro

Bill Wentz – transaction attorney, Fewkes, Wentz & Strayer

Mary Los - SBA Manager, Fifth Third Bank

All are presenters in our “How to Buy a Business” seminar sponsored by Fifth Third Bank.  Click the video to the left to view a video of Jim Critchfield describing his experience as a first time buyer.

The Client

In July 2004, Verlo Factory Mattress Stores, LLC of Whitewater WI announced its intention to sell its Naperville franchise consisting of locations in Naperville, Lombard and Willowbrook. Manufacturing is done only in Naperville. The franchisor was looking for a buyer who could do more than just manage the existing facilities. Verlo’s president, Dave Young, wanted someone who could drive growth into the rapidly growing western suburbs.

The Assignment
The Naperville location on 5th Avenue is within walking distance of the offices of Joseph Associates International, Inc. (JAI). While the franchisor presented this as a non-exclusive opportunity open to all licensed brokers, it became a personal challenge for Joe McCaul given its proximity to the office and the fact that he drives past it every day during his daily commute.

The Results

Eric Ginn had been an executive in the IT industry for over thirty years and that was long enough in his mind. He contacted us in late July to see if we could help him find his own business to buy. After getting to know each other, we registered Eric with Verlo as a buyer on August 18th. Eric and his wife Sharon subsequently attended our “How to Buy a Business” seminar in September.

On December 1st, the Naperville Verlo was purchased by the Ginn’s for an undisclosed amount. Congratulations to our latest successful seminar grads!

The Client

David Austin knew a good idea when he saw one; the Celebrity Kids photo portrait studio in Indianapolis. After approaching the owner, he became the first of what proved to be many Celebrity Kids franchisees. David lived in Chicago’s Lincoln Park neighborhood, an area with ideal demographics. He opened his studio in September 1999 at 2121 North Clybourn, a few blocks from his home. Young and full of ambition, he kept his full-time job. He subsequently married and began a family.

The Assignment

David’s career and business both continued to progress. In January of this year, he began a new job in Connecticut. He soon realized that there were not enough hours in the day for his family, employer and photo studio. The decision was made to sell the business following a discussion with his accountant, Peter Audenas of Remote Controller in Naperville. Peter referred David to Joseph Associates International, Inc. (JAI, Inc.) and a listing agreement was executed on March 19th following a telephone interview and exchange of Emails.

The Results
On October 14th, the Lincoln Park Celebrity Kids studio was purchased by Callaway Ventures, Inc. for an undisclosed amount. While David Austin had never worked full-time in his business, Callaway Ventures will operate the store as a family business. Betsy Long spearheaded the acquisition. Her background as a CPA allowed her to almost single-handedly find, finance and close the deal. Sons Jason and David have resigned their previous positions to join the new family venture. Their plan is to learn the craft and then open other Celebrity Kids studios in new locations. Betsy and her husband Phil will serve as board members.

This deal was very unusual in that the out-of-town seller, David Austin, has yet to meet either his broker or his attorney who was referred to him by JAI, Inc. David was represented by Markus May (Johnson, Westra, Broekker of Carol Stream) who closed using power of attorney.

Setting this transaction further apart from the norm, the buyer did not meet anyone from JAI, Inc. until the closing. The Longs primary residence is in Michigan. JAI, Inc.’s internet-focused marketing and sale process had allowed Betsy to qualify herself as a buyer and get the information needed for her decision without the traditional broker and site visits. Click here to view the streaming video JAI created for Celebrity Kids to give buyers a view of the business and its surroundings without having to leave their computer. Betsy had flown out to meet David at a Las Vegas convention after she had becoming interested in the acquisition. As a final twist, Betsy was having trouble locating an attorney in Chicago. She was referred to Harlan Kahn (Bronson, Kahn of Chicago) by JAI Inc.

Click here to view Dave Austin's comments on Joseph Associates International, Inc.

Click here for the official press release.