What I Learned When My Father Sold Me His Business
When I started working for my father at Vomela in 1975, I knew virtually nothing about the business. But through the years, he taught me countless life lessons about owning a company. In the process, he shared the importance of creating a vision for successfully selling a business.
My father, Carlo LaManna, entered the print label and converting industry before it was really even an industry. In fact, when he joined the company in 1947, label converting equipment wasn’t even available. Vomela had to develop and manufacture it.
However, this gave us a big advantage: No competition.
So when businesses like 3M Company (Minnesota, Mining and Manufacturing) needed to convert raw materials into innovative products, Vomela became their go-to source.
Over time, our relationship with 3M strengthened into a partnership. They supplied innovations in raw materials. We provided innovative equipment and methods of converting those materials into products.
This partnership wasn’t forged with attorneys or contracts. It was established through trust, handshakes and mutual respect. Together, we created and shared intellectual property without lawyers. It was like a closed-door marriage between two cutting-edge industries.
As our loyalty with 3M grew, so did their company. As 3M became a popular brand in households nationwide, we remained behind the scenes, running the specialty printing and finishing services. For 25 years, we enjoyed a sweet ride without any competition.
When company founder Jack Vomela retired in 1980, my father purchased the entire company. With his “can do” attitude and innovative mindset, Carlo expanded the company from 32 employees to more than 200. Vomela grossed upwards of $5 million in contract business with gross margins of over 80 percent.
Six years later, after 40 years of employment at Vomela, my father decided it was time to sell the business. It was a four-year selling process that opened my eyes to a new way of thinking. My goal is to share this perspective with other business owners looking to sell.
Deciding to Enter the Selling Phase
I’m fortunate enough to still have my father in good health. So when I grew curious as to why he decided to sell, I simply asked.
His answer was twofold. First, he didn’t feel comfortable with the technological shift towards digital printing. That’s understandable for a 40-year veteran of an industry that was on the brink of sweeping changes. Second, he was satisfied with his career. (The refreshing simplicity of this answer surprised me.)
Today, it seems business owners are never satisfied. Their business becomes a part of their identity and they can’t possibly imagine living without it. Morbid as it sounds, some decide to practically work until they die at their desks.
But things were different for my dad. His clients were happy, he was happy, and my mother was ready to spend more time with him. Plus, he was able to provide all 11 of his children a bigger and better home than the one in which he grew up. These were his signs that it was time to move on.
At first, selling seemed like it was going to be a relatively easy process. Although my father didn’t know how to sell, he already knew his buyer: Me. Working with him for the previous 11 years had transformed me into an enthusiastic young protege ready to take the reigns.
Unfortunately, the process didn’t run as smoothly as we hoped. As soon as we announced our succession plan, our entire family became upset. My siblings couldn’t believe that I was receiving the whole pie, even though I was the only child to have successfully graduated college.
To overcome this emotional hurdle, we brought in an outside consultant named Tom Hubler. (He remains part of the LaManna Consulting Group today. He helped my family air their grievances and provided the emotional counseling we needed to accept this monumental change.
And wouldn’t you know it? All of us siblings are still talking today. I guess that means we did something right.
A Simple Vision for Retirement
Business owners often struggle to formulate a post-retirement plan. After all, what could possibly fill the void of their professional life?
For my father, that plan was simple. He wanted to throw horseshoes, spend time with his wife, and enjoy living in Florida. His focus was to live a healthy lifestyle filled with appreciation for his family and friends.
Today, he never talks about money. He looks out for his children and loved ones, teaching us the importance of living a “pay it forward” lifestyle that includes giving to charity, the community and church.
Current business owners can learn a lot from this attitude. Too often, sellers hold out for that extra million dollars that they may never receive before closing a deal. They’re so focused on meeting certain financial goals that they forget about the truly important aspects of life.
Life isn’t about money. It’s not about your business, either. It’s about the people who helped you achieve success: Your family, friends and community. My father was an innovative giant who inspires my professional and personal life.
If you’re struggling to picture life after retirement, I suggest you talk with transitional expert Paul Cronin of The Platinum Years. He can help guide you through the sales process and form a fulfilling post-retirement plan.
As you grow and eventually look to sell your own company, remember this: Hard work and passion build a successful business. Your loved ones and community build a beautiful life.
It’s my personal mission to pay it forward by sharing the lessons I learned from my father with others. Got questions? Give me a call. (561)543-2323
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