The Pat Crann Story: A Case Study on Selling a Print Business
How a Young Screen Printer Grew His Business and Exited on His Own Terms
What do you do when an owner is ready to sell the business, but the business is not ready to be sold?
I experienced this with a young man who was interested in selling his business himself. Pat Crann, founder of Shout Out Loud Prints in Columbus, Ohio, was emotionally ready to sell his apparel screen printing operation. He had a small staff and the proper equipment, but he did not have anyone qualified to succeed him at the management level. A strategic buyer who was interested in being an owner-operator would be a good fit as a buyer.
At first glance, I felt Pat would be leaving a lot of money on the table if he sold the business as it sat. After completing the valuation and going through the analysis, my team agreed. There was so much potential in this small company, and I knew Pat could command a higher selling price if he was willing to work at it.
Furthermore, Pat wanted to sell the business himself, but there were key parts of the process he didn’t understand yet. He needed someone in his corner who had the knowledge and experience to guide him. He turned to the LaManna Consulting Group.
From our discussions, I sensed that Pat had the right kind of personality and intelligence to lead and build and sell his business, but did he have the heart and patience to do so?
Pat expressed to me that, even though he was in his mid-30s, after 18 years in the business he was exhausted and overwhelmed. He was leaning toward exiting right away. He knew there was room for the business to grow, but he thought he might leave that to a new owner. He did, however, want to be sure his employees and customers would be taken care of. If the business was not strong enough to survive with a new owner, he would be letting down the people who relied on him.
After we looked at his objectives, Pat and I agreed that he should be personally coached. I explained to him that it typically takes 18 to 24 months to sell a business at maximum value. As we developed his roadmap, we customized it so he could move faster when he was able, and slower when business and personal issues demanded his attention. The flexibility in our approach gave him the discipline it requires to stick to the strategic plan.
Pat now saw light at the end of the tunnel. He was beginning to envision a future free from all of the worry and responsibility that was weighing on him. He saw that he didn’t have to be alone through the process. With this new peace of mind, he put his trust in LaManna Consulting Group.
From team-building to sales strategies to getting his financial house in order, Pat worked on all aspects of solidifying and growing his business. Pat flourished in our coaching program, adopting the LCG values of truth, trust, and transparency.
Not every entrepreneur is able to manage the sale of his or her business in this manner. It is a full-time job to sell a business on top of running the day-to-day operation. Pat knew he had to trust and empower his team in order to create the kind of business that could be maintained while he put his attention elsewhere. In every way, Pat applied what we had taught him. He was able to work with the strategic roadmap, get the right pieces in place, and execute confidently.
When it was time to vet prospective buyers, we knew we had to focus on more than a transaction. Yes, the buyer had to be financially able to acquire and run the business.
When a founder has put his heart and soul into a business, he needs to know that the person taking over will be able to carry on the legacy. Click To TweetWith our personalized and targeted process, we were able to attract and secure the right entrepreneur who had the will and commitment to lead Shout Out Loud Prints.
The sale of Pat’s business culminated in Spring 2020, during the early months of the pandemic. The closing date was affected by adjustments in closing procedures and the workloads of financial institutions. Yet Pat’s team of sell-side advisors persevered and kept his buyer engaged and motivated to close. In a time when it was challenging to bring all the players to the table, Pat showed his confidence and maintained his growth trajectory in closing the deal.
Was it worth it? I’ll let Pat tell you in his own words. Take a look at this video testimonial from Pat Crann and his wife, Rachael. Their smiles tell the story of freedom, renewed vigor, and optimism about the future.
Are you an entrepreneur who has wondered if you can build and sell your business yourself? With the right heart and willpower plus the guidance of our experienced team, you can. Let’s talk. (561) 543-2323