Post Labor Day Boom& ITS EFFECTS ON OMAHA PG. 14

Next ChapterJAYE MCCOY’S RISE TO CEO PG. 8

John PerlebachHOW ONE ENTREPENEUR’S ROOTS LED TO SUCCESS PG. 5

EXCLUSIVE LISTING EDITION

THE FIRM BUSINESS BROKERAGE WARRANTS THE INCLUDED INFORMATION HEREIN TO BE TRUE AND ACCURATE

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Volume 1 Issue 1

Published by The Firm Business Brokerage, LLC

President/Editor • Cortney Sells

Director/Assistant Editor • Cassandra Powers

In-House Legal Council • Susanne Miller

Client Development Director • Alexa Billings

Managing Broker • Wendy Richey

Executive Broker • Tracy George

Executive Broker • Rachael Rand

Executive Broker • Elizabeth Jones

Executive Broker • Lindsay Novak

Associate Broker • Steven Standifer

Outreach Coordinator • Rene Rademacher

Marketing Division • Adam Jaime

Client Services • Nycole Wandvik-Tolle

IT Department • Adam Trubnikov

Contributing Writer • Anthony Flott

Contributing Writer • Connie Barker

Photography • Bill Sitzmann

Design • OBI Creative

To subscribe:

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The Firm Deal Review Fall 2014

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Columns

4 Negotiated Construction is taking off again!

12 Net Worth Some things to consider before

buying your first business.

14 Executive Impact The Post-Labor Day Boom

15 Cash Flow The Pros and Cons of SBA Lending

Departments

5 Setting a Trend Buying Nu Trend Dry Cleaners was the

right step for budding entrepreneur.

6 A Positive Outcome Wendy and Barry Richey realize

everything happens for a reason.

13 Motorhead to Company Head Andy Oelkers’ life-long love of cars led

him to his dream business.

The Bottom Line

Sells Insights

Turning Blueprints into Skyscrapers

Her Own BusinessJaye McCoy proves it’s never too late

to buy your own business.

pg.8

We’ve collaborated with Omaha’s deal-making experts to bring you the

most insightful, impactful business transac-tion content. Whether you are white collar, blue collar, or no collar at all, our mission

is to provide you with professional guid-ance in the volatile world of mergers and acquisitions. Allow us to lead you through a first-class tour, where daily Omaha’s local entrepreneurs turn their dreams of blue-prints into skyscrapers. Where company revenue size is relative to the business own-er’s constant struggle of profit margins and cash flow. Let us take you closer to the deal-making world that is happening right outside your front door. The FIRM

Special Section

7 Fresh Off The Firm There are 75+ opportunities on the

selling portfolio such as specialized

medical clinics and ground maintenance.

by Cortney Sells president/editor

3Fall 2014 The Firm Deal Review

4

Negotiated: The Weitz Company’s construction is taking off again!

written by Chris Harrison, President of The Weitz Company

Everywhere you look the scrap-

ers and cranes are moving in next door to your home and your office. Guys like me in the commercial con-struction business

love it as it’s been several long years coming to get our businesses jump-started again!

With all of this new activity around us it might be time to make a move to either sell or buy a construction product or subcon-tracting type business. Right now, the future looks bright.

In all seriousness, it feels and looks like the residential and commercial construc-tion markets are booming again in Oma-

ha and the surrounding areas. If you look around, many businesses, developers, and institutions are either in the middle of construction or are working with de-signers planning expansions, renovations, or new buildings altogether.

The University of Nebraska system has numerous projects lined up as does the University of Nebraska Medical Center, Metro Community College, and many other higher education institutions. Many of Nebraska’s K-12 schools are or will be going through renovations, additions, and repurposes now and in the future— for many years to come.

Data Centers and other large companies continue to be attracted to Omaha, which is located in the center of our nation logis-tically with great resources such as an ed-

ucated work force, low cost of living, great schools, lower cost labor, and a favorable business climate. This will continue to at-tract new businesses and people to our great state, thus fueling the design and construction market.

I’m not the “buy and sell” type business magnate, just a simple guy growing a commercial construction business here in town. But I remain very optimistic that as Omaha grows, businesses in the con-struction world will also grow. So maybe, if you’ve always wanted to own your own small business related to construction, now may be the time! The FIRM

The Firm Deal Review Fall 2014

Amy Anzalone, Jeff Lovely, John Perlebach

John Perlebach has always believed in working hard.

In high school, he ran his own snow remov-al business. He worked at nursing homes his family operated. In college he sold jet skis, four-wheelers, and other fun rides at a family-owned sports store. After college he chose to pursue something different from the family business and moved to a different industry: gas stations. That choice eventually brought him to his current po-sition directing acquisitions for Buchanan Energy, a family-owned and operated chain of 200 convenience stores and gas stations that Steve Buchanan began from a single outlet in Omaha.

In addition to his position with Buchanan Energy, Perlebach now runs his own busi-ness, having purchased Omaha’s Nu Trend Dry Cleaners in March.

“I kind of knew what I was getting into,” says Perlebach, 33. “I’ve been around small business all my life. Working with Steve Buchanan has been another experience that kind of led me to know a lot about small business.”

Now he’s getting to know a lot about the laundry business. Nu Trend features six lo-cations, maintains a plant which launders over 500,000 pieces of clothing per year, and offers delivery service to its customers. With over $1.9 million in sales in 2013, it appealed to Perlebach as a recession-re-sistant business. And, he said, the previous owner “had kind of a well-oiled machine put together.”

Previous owner Michael McKernan actu-ally didn’t have any intention of turning over that well-oiled machine to another owner. His father, Tom McKernan, started the com-pany with a single location in 1986. When he died nine years ago, the reins fell to his son. Wanting the business to continue, he made the decision to operate it with his mother, wife, and cousin.

Setting a TrendBuying Nu Trend Dry Cleaners was the right step for a budding entrepreneur.

written by Anthony Flott • photos by Keith Binder

Competitors had often inquired about purchasing Nu Trend, but McKernan al-ways refused. But, nearly a decade after assuming his role, McKernan was ready to focus more on the company he founded in 2009, Dynamic Equipment and Consulting. After much thought, in December 2013 he was ready to sell and Perlebach was ready to buy.

“It was one of those offers hard to refuse,” McKernan says. “The most difficult thing was taking care of the employees that were with us for a long time. We had employees with us for 25 years. Finding the right fit that the new owner would keep them aboard and let them finish their career was probably the hardest decision. This owner has been willing to do that, and so it made things really a lot easier.”

And it all happened in about 90 days.

McKernan was impressed with the ser-vices provided by the professionals of The Firm Business Brokerage who facilitated the transition. “They’re very professional and the way they expedite things, there’s no messing around,” McKernan says. “They say what they’re going to do and it’s done.” The FIRM

5Fall 2014 The Firm Deal Review

The Deal ReviewDays on the Market: 52Law Firms: Abrahams Kaslow & Cassman and Douglas W. Ruge & Associates Reason for Sale: Seller’s father passed awayNumber of Locations: 7Purchase Price: $740,000Year Established: 1986

6

the prior existing restaurant was closing. They had established a great friendship with the current chef and admired his talents, backed by strong business skills, they ven-tured into Zurlos together. Over the next 4 years they created a great environment for customers and a quality reputation. They added on catering services that boosted sales. Like everything in life circumstances changed and Lori wanted to spend more time with kids and grandkids. It was time to starting exiting the business.

Lori and Steve approached The Firm about confidentially listing the restaurant for sale. They had been referred to The Firm from a respected colleague. The process then began and after a few interviews with potential buyers the Stangls had not met the right ones.

Wendy and Barry Richey were contem-plating buying a business to add to their investment portfolio. By chance, Wendy was a business broker at The Firm. In a lighthearted staff meeting the listings were being discussed and lights went off in

Wendy as Zurlos was being presented and she said “I should buy that!” Everyone agreed it would be a great fit and a buyer/seller meeting soon ensued.

Lori and Steve. Wendy and Barry. It was uncanny reflection of personalities and tal-ents, both sides being comfortable with each other. The offer was made, accepted and the wheels were set in motion by The Firm to complete a transaction in 30 days. There were so few obstacles along the way that when a few days before closing Lori decided it was time to tell her head chef what was about to happen. She had the utmost confidence that she was handing her ‘baby’ over to new owners. To her surprise her head chef did not see this transaction as a positive move. So, 24 hours before the closing day the Richey’s were forced to accept the reality that they were buying a restaurant without a chef!

Despite that obstacle they knew there were 20 other employees that depended on their jobs and, with the help of The Firm and their connections, it only took a day or two to line up a talented new chef, Vicki Swartz, to fill a much needed void. General Manager, Richard Mach and a strong talented team of kitchen and front house staff all remained on. Amazingly, the first month with the new team was one of the best the restaurant had seen. As Wendy stated “We didn’t buy just a business, we bought an entire team of talent.” The FIRM

A Positive OutcomeWendy and Barry Richey realize everything happens for a reason.

written by Connie Barker • photo by Bill Sitzmann

Why would you buy a restaurant?” is the first question out of everyone’s

mouth when Wendy and Barry Richey an-nounced to family and friends that they are now the new owners of Zurlos Bistro Italiano as of May 1, 2014. They both smile and reply “Why would you not?” Of course given that question on May 1st the answer may have been different…..

Zurlo’s was the brain child of Lori and Steve Stangl almost four years ago when

Zurlo’s general manager Richard Mach, head chef Vicky Schwartz, and owner Wendy Richey.

“

The Firm Deal Review Fall 2014

The Deal ReviewLaw Firms: Koley Jessen and Brodkey, Peebles, Belmont, & Line Deal Challenge: Chef leaves two days before closingMultiplier: 2.4Financing: Promissory Note from sellerReason for Sale: Sellers wanted to spend more time with grandkids

Fresh Off The Firm

Omaha Pain Clinic$1,800,000 FOR SALE

With 1,700 active clients and an owner’s profit of $767,414 last year, this business listing is sure to not last long. The office is set up and equipment is all in place for a qualified buyer.

Fashionable Women’s Clothing Boutique$139,000 FOR SALE

This is a unique women’s clothing store that has had a terrific following for the last seven years. It also boasts exclusivity on much-in-demand but hard-to-find brands. It’s in an ideal location in Sarpy County, the fastest growing county in the state.

Interpretation Services Company$380,000 FOR SALE

With 45 contract translaters providing interpretation services in 240 languages, this business is profiting $100,677 a year and has gross sales of $561,090.

Animal Care Clinic $515,000 FOR SALE

In business for over 30 years, this business is profiting $157,287 a year and has had continuous growth over the years, serving over 2,000 families.

Sports Bar with Volleyball$229,000 FOR SALE

With volleyball courts and a beer garden, this business is producing an owner’s profit of over $90,000 a year. With a new build-out and plenty of room for parties, this business is perfect for an owner-operator.

Custom IT$2,020,000 FOR SALE

This business has a cash flow of $523,528 a year and has over $2,000,000 worth of equipment and intellectual property, all included in the sale of the business.

Specialty Transportation $360,000 PENDING

With all the special events in the area, this business is constantly busy. Having 10 drivers and eight transporting vehi-cles—this business is certainly turnkey for a new owner.

Ground Maintenance $2,250,000 PENDING

Founded in 1985, this family-owned business has over $600,000 worth of equipment and an owner’s profit of $761,484/year.

West Omaha Private School$257,500 SOLD

A well-prepared environment for children is exactly what this business has. With all the necessary equipment and curriculum for the business, this school will not be on the market for long.

Lawn & Landscaping$1,490,000 SOLD

Doing almost 50 percent to the bot-tom line, this business is fully equipped and has a strong cash flow of $325,106 a year. Being in business for over 30 years has certainly built up the business’ name and reputation.

No actual businesses names are used on this page.

7Fall 2014 The Firm Deal Review

8 The Firm Deal Review Fall 2014

The Deal ReviewReason for Purchase: Sold their 26 year old company in efforts to start life’s next chapter.Financing: Conventional loan by Access BankProfit Margins: 33%Days on the Market: 51Growth: 16% year over yearTransition: Seller agreed to work for 1 year

AS ITS NEW OWNER, TODD NELSON IS EAGER TO CONTINUE THE LEGACY OF DIAMOND LAUNDRY’S SUCCESS.

Her Own BusinessJaye McCoy learns it’s never too late

to go into business for yourself.written by Anthony Flott • photos by Bill Sitzmann

When asked about the genesis of Di-amond Laundry Service, Jaye McCoy

says, “We realized there was a niche there [in healthcare], especially for smaller offic-es.” Thinking back to the beginning, she re-calls, “We did anything from a one-person doctor or dental office to gigantic clinics with 17 doctors.”

With the introduction of OSHA regula-tions on the laundering of materials such as lab coats, gowns, and surgical towels, Bernard McCoy saw an opportunity for success and launched Diamond Laundry. The business was established in 1994, and Jaye McCoy worked as Vice President to help her husband build the growing brand.

By January of 2014, Diamond Laundry had moved into a large commercial facility at 146th and Grover, and had 120 clients seeking their services. Although business was at its peak, Jaye could not shake the growing desire to try something new.

The ultimate decision to sell their busi-ness was not easy. As Jaye puts it, “Your life is that business. I grew up in my fam-ily business, and our kids helped us in ours.” However, at age 56, she could not shake the urge to do something different with her career.

The McCoy’s listed their business with The Firm Business Brokerage in January, with no particular urgency Continued >

Helping seniors makes Jaye McCoy’s

new endeavor “so, so meaningful to me.”

Jaye McCoy and her husband, Bernard, sold their business,

Diamond Laundry, to entrepreneur Todd Nelson.

9Fall 2014 The Firm Deal Review

10

Jaye McCoy at home.

or request for a speedy sale. Within a week of listing, however, Todd Nelson had submitted his mutual confidential disclosure agreement, reviewed financial and operatory information, and submit-ted a contingent offer to purchase for Diamond Laundry.

Nelson had an impressive resume. Found-er of Energy Grid Solutions and an engineer at Kellogg’s, he was eager to add Diamond Laundry to his repertoire. After meeting with Nelson, the McCoys felt confident that he was a savvy entrepreneur and business-man they could trust with the business they had worked so hard to establish.

On March 7, 2014, the day of closing, Nelson recalls that Bernard McCoy, “Was a little choked up,” and adds “Anyone who builds a company from scratch gets

The Firm Deal Review Fall 2014

some attachment to it.” As its new owner, Nelson is eager to continue the legacy of Diamond Laundry’s success.

During the three months it took to ne-gotiate the terms of sale and finalize the closing documents for Diamond, FirstLight HomeCare, a Cincinnati-based company specializing in companionship and in-home care for seniors, went on the market. Jaye jumped at the opportunity to do something meaningful for herself and the community

WITH THE CONTINUED SUPPORT OF HER HUSBAND, BERNARD, JAYE MCCOY HAS MANAGED TO SERVE AS AN EXAMPLE FOR ANYONE READY TO JUMP INTO BUSINESS OWNERSHIP. in which she lives. Within six weeks of sign-ing her Contingent Offer to Purchase, she was sitting on the other side of the clos-ing table finalizing the paperwork to start her new venture.

It was a quick turnaround. “They literally did this whole thing in six weeks,” says Jaye,

“My mind was spinning. It was a challenge trying to sell one, buy one, and balance it all.” Clearly, it was worth it in the end.

Today, she is the proud owner and Pres-ident of FirstLight, where she leads 46 people on her team. The experience has been a triumph for everyone involved, but especially Jaye McCoy. With the continued support of her husband, Bernard, she has managed to serve as an example for anyone ready to jump into business ownership.

After taking the risk and going into busi-ness for herself, if there is one thing Jaye has taken from this experience, it is the knowledge that, “You really can do this. You really can own your own business and succeed!” The FIRM

11Fall 2014 The Firm Deal Review

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12

Net Worth:Things to consider before buying your first business

written by Rob A. Randels, CFP®, MBA, ChFC®, CLU®, CLTCWealth Management Advisor

Northwestern Mutual Wealth Management Company

Have you ever thought about buying a busi-

ness? Many of my clients already own one or more, and many more flirt with the idea on a regular basis. Questions to ask yourself

include “Am I buying a job?” or “Is this an investment?” Maybe both? Many of the most successful businesses have significant owner involvement or a trusted individual directly involved in the day-to-day opera-tions, which is critical.

Owning a business can be a form of di-versification to an already successful inves-tor. You may have personal investments, a retirement plan, rental property, or other assets. Entrepreneurs have a unique ability to manage multiple ventures at a time.

When you ask business owners about their decision, many will tell you it was the best decision they have ever made. This doesn’t mean it doesn’t come with a lot of hard work and added stress at times. Remem-ber, “Nothing ventured, nothing gained,” Benjamin Franklin quipped.

How will the financing transact? Are you able to pay cash? Will this transaction be financed? Remember, you are likely to need at least 10 percent down in order for your friendly banker to partner with you. The bank will like to see you have some “skin in the game” to demonstrate your true com-mitment. Having a great relationship with a commercial banker is a must and, with their experience, they can often protect you from a deal that they recognize is just “not right.”

“Every worthwhile accomplishment, big or little, has its stages of drudgery and tri-umph: a beginning, a struggle, and a vic-tory,” as Gandhi said.

I wish you the best with your pursuit. Have a happy, successful and profitable 2014 and beyond! The FIRM

The Firm Deal Review Fall 2014

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Andy Oelkers is very much at home with his new business, Auto Air Plus.

Motorhead to Company HeadAndy Oelkers’ life-long love of cars led him to his dream business.

written by Connie Barker • photo by Bill Sitzmann

Andy Oelkers has been a gearhead and grease monkey since before he could

drive. He was working at the co-op gas station in Cozad, pumping gas, changing oil, and doing basic service work when he was 15. Back then, his primary goal was to save enough to buy his first car.

After high school, Oelkers went on to com-plete auto-body repair classes at Southeast

Community College in Milford. He found a job in Mesa, Arizona, doing something he loved: restoring high-end automobiles to their former glory. Although he loved

“OBVIOUSLY, I’M A CAR GUY. THIS IS THE WORLD I KNOW. SO AUTO AIR PLUS WAS PERFECT FOR ME.”

- Andy Oelkers, Auto Air Plus

the job, Oelkers and his wife, former high school sweethearts and Nebraska natives, wanted to raise their family in the Midwest.

Last year, Oelkers started looking for opportunities that would bring them back home to Nebraska. The jobs he found did not fit the needs of his growing family. Since

he could not find the right fit in someone else’s business, he thought about owning his own. He reached out to The Firm Busi-ness Brokerage.

“We worked together to figure out the best fit with what I know and what was avail-able,” he says. “Obviously, I’m a car guy. This is the world I know. So Auto Air Plus was perfect for me.”

Oelkers has been running the store at 4910 L St. since March. His family is back in Nebraska. At some point, he hopes to buy other businesses in Omaha. And yes, they will surely be related to his passion for cars.

“Honestly, I wouldn’t feel comfortable if there weren’t cars and trucks involved,” he says. “That’s just who I am.” The FIRM

13Fall 2014 The Firm Deal Review

The Deal ReviewReason for Purchase: Buyer moved from Arizona to Omaha with family for new business opportunityMultiplier: 2.4Financing: Combination loan from Pinnacle Bank and 1st State Bank Reason for Sale: Seller divorce

14

Executive Impact: The Post-Labor Day Boom

written by Susanne Miller J.D., In-House Legal Counsel, The Firm Business Brokerage

With Labor Day upon us, the business community is preparing for transition

out of the summer slowdown. In both 2012 and 2013, the mergers and acquisition com-munity saw a real Post-Labor Day Boom in deal activity. After summers filled with vacation, deal-makers returned to have a productive and profitable fall deal season.

Activity picked up almost immediately after Labor Day, and the trend contin-ued into the following months. Ultimately, we saw a 22% increase in deal flow from the combined first and second quarter totals to the combined third and fourth quarter totals.

The same trend appeared in 2012 thanks to the anticipated tax hikes set to occur at the end of the year, deal flow still trend-ing upward after Labor Day. The first week

of September was sluggish, but deal flow picked up in the following months. Activity continued to surge, with a particularly active month of November.

If the Post-Labor Day Boom from past years holds true in 2014, the business com-munity should begin to see increased activ-ity in the coming weeks. In 2012 and 2013, there was a marked difference between the pre-Labor Day low and October’s peak deal flow.

With Labor Day signaling the middle of the third quarter, it makes sense that more deals occur in anticipation of the

fast-approaching year end. The distinct ebb and flow of ready buyers and sellers finally come together and businesses can be successfully transitioned. With that in mind, the industry experts of The Firm Busi-ness Brokerage predict that the end of the third and beginning of the fourth quarter in 2014 will see more deals closing in the Midwest market and more businesses op-erating under new ownership at year end. If you have been thinking about selling or buying a business, now is the time to act by initiating a confidential and complimentary business valuation with a member of our executive staff. The FIRM

0

5

10

15

20

25

30

Quarter 1 Quarter 2 Quarter 3 Quarter 4

TOTAL LISTINGS 2012 & 2013 (COMBINED)

The Firm Deal Review Fall 2014

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Cash Flow: The Pros and Cons of SBA Lending

written by Marie Allely, TS Bank

Whether a person is just starting a business or has been established for

years, a Small Business Administration (SBA)loan can help turn business owners’ dreams into reality. The U.S. SBA 7(a) loan is the program of focus today.

The 7(a) is the SBA’s primary, most flexi-ble program and partners with commercial lending institutions. To be considered for an SBA loan, a business must demonstrate that it has less than $15 million in tangi-ble net worth and two year’s net income after taxes of less than $5 million. It is perhaps the most widely used, but before diving in, here are some pros and cons of this specific program.

Pros:1. Offers longer maturities of up to ten years

for working capital and up to 25 years for real estate and fixed assets, which can free up more cash flow because the payments are lower.

2. Rates are capped at the Prime Rate published in the Wall Street Journal plus a spread. • Loans with maturities of seven years

or less—spread is maximum of 2.25% over Wall Street Journal Prime Rate.

• Loans with maturities of more than sev-en years - spread is maximum of 2.75% over Wall Street Journal Prime Rate.

• Have access to capital where tra-ditional commercial loans may not be available.

3. Businesses that lack sufficient collateral for a traditional commercial loan may find SBA loans useful.

Cons:1. Generally, an SBA loan requires more

information than a traditional commercial loan and all available collateral, including personal assets and personal guarantees from the principal owners.

2. SBA loans can take more time to approve and fund.

3. Some businesses are ineligible, such as nonprofit organizations, lenders, pas-sive businesses, life insurance companies, and limited-membership private clubs.

4. SBA loans may require guarantee fees that do not apply to conventional com-mercial loans.• Loans under $150,000 have a fee

of 0% of the guaranteed portion of the loan.

• Loans over $150,000 but shorter than a one year term have a fee of 0.25% of the guaranteed portion.

• Loans $150,000 to $700,000 and over with a one year term have a fee of 3.0% of the guaranteed portion.

• Loans $700,000 or greater have a fee of 3.5% of the guaranteed portion, ad-ditionally 0.25% on any guaranteed portion over $1 million.

Community banking institutions, like TS Bank, recognize how important small businesses are, and specialize in local decision-making, so clients work directly with the people approving their loan. Small business owners should pursue community banking institutions who meet their unique needs of seeking capital, whether it is to expand or provide the working capital to grow, and want to be their financial partner.

Connect with Marie on LinkedIn and visit tsbank.com to learn more. The FIRM

15Fall 2014 The Firm Deal Review

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