Case Study Twelve
Tires Plus, owned by Tom Gegax and Don Gullett, started as a startup business
partnership that eventually became a major company with 150 stores and over $200
million in sales each year (Longenecker, Moore, Petty, & Palich, 2008).
entrepreneurs were ready to sell their business, and needed to find the best option for
themselves, the company, and the employees.
Essentially, they had to plan their exit.
“Exit planning describes the suite of tools and processes used to prepare a private
company for sale” (Brown, Howes, & Short, 2008, p. 41).
The tools include mental
preparation for the selling process, reviewing tax situations, attracting potential buyers,
maintaining records, and sealing the deal (p. 41).
Gegax and Gullett considered passing the business to their children first.
harvest strategy would allow the company to stay in trusted hands and would also make
for a smoother transition.
However, neither Gegax’s nor Gullett’s children had a desire
to take over the family business (Longenecker, Moore, Petty, & Palich, 2008).
that there was no heir apparent for the successful company left the business community in
wonderment about the future of the company.
Gegax and Gullett were approached with
the idea of taking the company public, but this was not the best solution for Tires Plus.