Summary: Corey Veverka shares his journey of buying the business where he worked and provides insights into the process of acquiring a business. He discusses how he was recruited by the owner, the initial offer to potentially transition into ownership, and the challenges he faced in financing the deal. Corey explains the nature of TBS's business and its revenue model, highlighting the project-based nature of their work. He also discusses the competitive landscape of the industry and the importance of providing high-quality services to differentiate themselves. Corey talks about the emotional aspects of buying a business, including the financial implications and the need to align with his wife's goals. He emphasizes the importance of building a team of professionals to guide the acquisition process and shares his experience with refinancing the SBA loan. Corey concludes by discussing his role in the business and his plans for the future.

Key Takeaways:

• Corey's journey of buying the business where he worked highlights the potential for employees to transition into ownership.
• Financing the deal was a challenge, but Corey was able to secure an SBA loan to acquire the business.
• TBS specializes in validation and compliance for pharmaceutical manufacturing facilities, primarily through project-based work.
• The industry is competitive, but TBS differentiates itself by providing high-quality services and building strong relationships with clients.
• Buying a business involves emotional considerations, such as the financial implications and the need to align with personal goals.
• Building a team of professionals is crucial for navigating the acquisition process and ensuring a successful transition.
• Refinancing the SBA loan allowed Corey to secure a fixed rate and alleviate the personal guarantee requirement.

Quotes:

• "Ownership of a company is kind of Life Amplified, so the highs are higher and the lows are lower." - Corey Veverka
• "The SBA loan has a 10-year term, which allows for cash flow and makes it easier to pay off the note." - Corey Veverka

The Article:

The Journey of Buying the Business You Work For: A Comprehensive Guide

Corey Veverka shares his unique story of buying the business he worked for and provides valuable insights into the process.

Introduction

Buying a business is a dream for many individuals who are looking to take control of their professional lives and build wealth. However, the idea of buying the business you currently work for may seem like a far-fetched concept. Corey Veverka, a mechanical engineer turned business owner, shares his journey of buying the business he worked for and provides valuable insights into the process. In this comprehensive guide, we will explore the main themes discussed by Corey and analyze the implications and potential impact of each theme.

The Appeal of Buying the Business You Work For

Corey's story begins in 2002 when he was recruited by the owner of the business, John, to join the company. The prospect of taking over the business was a major selling point for Corey, who saw it as an opportunity to lead and grow. He explains, "The concept of leading a company was absolutely the selling point of leaving the larger firm with a slower growth path." Corey's background in leadership and his reputation in the industry made him an ideal candidate for this role.

The Squishy Prospect of Ownership

While John initially mentioned the possibility of Corey eventually taking over the business, the details were vague and uncertain. Corey admits, "It was squishy...maybe he goes and sits on a beach somewhere and I just send him royalty checks, but I run the business." This ambiguity made it difficult for Corey to fully grasp the potential of ownership. However, as he gained more experience and saw the benefits of small business ownership, Corey's interest in owning the business grew.

The Evolution of the Deal

The process of finalizing the deal to buy the business was not without its challenges. Corey and John faced obstacles, including financing the deal. Corey recalls, "John went to his bank and asked if they would fund the deal, but they said no." This setback forced them to explore alternative financing options. Eventually, Corey discovered the possibility of obtaining an SBA loan through Comerica Bank, which specializes in financing owner buyouts. This revelation opened up new possibilities and reignited the deal-making process.

The Financial Aspect of Ownership

As Corey delved deeper into the financial aspects of owning the business, he realized the potential for wealth building. He explains, "I saw the deal at its core as being a good risk, a good bet." While Corey initially viewed ownership as a path to a comfortable lifestyle, he soon recognized the opportunity for significant financial gain. He shares, "I started looking at it in terms of wealth building and how to structure the deal to make it really pay off."

The Advantage of Buying the Business You Work For

One of the key advantages Corey had in buying the business he worked for was his intimate knowledge of the company. He had been with the business for 10 years and had a deep understanding of its operations, clients, and industry. Corey emphasizes, "I knew the business front and back...there were very few, if any, unknowns to me." This familiarity with the business mitigated the risks typically associated with buying a small business and provided Corey with a sense of confidence.

The Transition to Ownership

Unlike many business buyers who have to navigate the challenges of introducing themselves as the new owner to unfamiliar employees, Corey's transition was seamless. He had already established himself as a leader within the company and was well-known by the staff. Corey recalls, "Arnold and I got to stand up at an all-hands meeting and say, 'Hey, we're buying the business,' and everybody was like, 'Oh, cool.'" This smooth transition was a testament to the trust and rapport Corey had built with the team over the years.

The Ups and Downs of Ownership

Corey highlights the emotional rollercoaster that comes with business ownership. He explains, "Ownership of a company is kind of life amplified...the highs are higher and the lows are lower." While owning a business offers the potential for great success and financial gain, it also comes with increased responsibility and stress. Corey experienced this firsthand during the economic downturn of 2008 and the recent challenges faced by his business. However, he remains optimistic and focused on navigating through the tough times.

The Future Outlook

Looking ahead, Corey envisions continuing his role as a visionary CEO, focusing on strategic direction and client relationships. He plans to leverage the strong leadership team he has built to handle day-to-day operations. Corey also mentions the possibility of acquiring other businesses in the future, as well as exploring opportunities for Arnold to increase his ownership stake. While the current economic climate presents challenges, Corey remains confident in the resilience of his business and its ability to bounce back.

Conclusion

Corey Veverka's journey of buying the business he worked for offers valuable insights and lessons for aspiring business owners. His story highlights the appeal of owning a business, the challenges of financing a deal, and the advantages of buying a business you are already familiar with. Corey's experience demonstrates the potential for wealth building through small business ownership and the importance of building a strong team to support the transition. While business ownership comes with its share of highs and lows, Corey's optimism and strategic mindset position him for continued success in the future.

Watch it here: https://youtu.be/vPeEyxjwe60?si=D6kJLaiROBbF3p9u

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