Industry: Plumbing, heating and air conditioning services
The Opportunity: Sale of a Business

Family Business Center Solution: Implement financial management plan and the transaction of the sale of the business

Case Study
From water closets to air conditioning installation, Christy Plumbing & Heating Company, Inc. is a full-service plumbing, heating and air conditioning provider servicing both residents and businesses in the northern suburbs of Pittsburgh, PA. Larry Christy’s goal was to successfully sell his business, semi-retire and incorporate an effective financial management plan and process. He was approaching retirement age and decided to sell the business to Joe Cooney, who worked for Christy for 14 years as a plumber and in whose hands he believed the company would continue to grow and prosper.

The Tactics
FBC organized a team of experts to implement the financial management plan and sale of Christy Plumbing. The team included experts in legal, and insurance areas.

The legal experts took the time to learn the business, and the needs and concerns of both Christy and Cooney, to prepare the necessary buy/sell agreements and related financial tools and strategies for the transfer of Christy Plumbing to Cooney. The insurance advisor partnered with Christy to develop a financial plan for risk management, which included insurance policies to protect the assets of his family business during the selling process. “The FBC and its team of business experts at The Family Business Center were so professional, knowledgeable and helpful. I could not have successfully sold my business without them,” declared Christy.

Key Outcomes
• Systematic approach to sale of business resulting in seamless transaction
• Strategies and objectives to achieve long-term financial results
• Personal, business and financial success
• Negotiation and guidance expertise provided
• Increased job stability of employees

The Results
Now semi-retired and able to golf, fish, and spend more time with his family, Larry Christy feels a sense of peace and satisfaction as the company he built continues to grow under the direction of Joe Cooney and with the continuing assistance of the Family Business Center. Cooney has since enhanced the business’ value by putting a new air conditioning installation service into operation. The employees are now experiencing greater job stability knowing Cooney will continue to cultivate the longevity of business. The business is thriving and the customer base has remained solid.

Industry: Real Estate
The Opportunity: Business Reorganization

Family Business Center Solution: Implement and execute strategic business reorganization plan

Case Study
RE/MAX Select Realty has been servicing the real estate needs of Western PA since 2000, representing both buyers and sellers of residential and commercial real estate. Sister companies Keystone Lending Group and Key/MAX Settlement Service provide mortgage services and title services. Headquartered in Wexford, PA, RE/MAX continues to grow and expand with additional offices in Cranberry Township, Butler and Center Township (Beaver County). Managed by five principals, the company employs 85 sales associates and a 10-person administrative staff. RE/MAX affiliates offer advanced training and support a continuing education curriculum, helping to make the RE/MAX associates the highest producing agents in the industry. RE/MAX is heavily involved in the community, having developed partnerships with the Children’s Miracle Network, the Susan G. Komen Race for the Cure, and other charitable and fundraising efforts.

Like most companies, RE/MAX went through a series of growing pains. As the company began to gain momentum, Ed Rae, president and principal, sought a business solution to increase operating efficiencies and enable his real estate business to better service customers and sales associates. As one of the principals, Rae and several additional officers had ownership interest in three separate companies comprised of real estate, mortgage and closing/title services.

The Tactics
To remain competitive and grow in the real estate industry, Rae recognized that the principals needed to develop a new strategic plan - one that would unite the three entities and allow them to work together toward a common goal.

During the initial meeting at The Family Business Center, Rae explained how the resources of the FBC could help facilitate the resolution of the organization’s current issues and create a solid foundation for profitable growth. A team of experts, cooridnated by the FBC, was to create and implement a strategic business reorganization plan.

Taking the advice of The Family Business Center professionals, the principals relinquished separate ownership of the three companies to form one entity, the holding company New Beginnings, LLC. “The Family Business Center team provided top professionals, in both legal and financial fields, who put together a comprehensive structuring plan to make our company profitable now and into the future,” stated Rae, “it helped the officers focus their energy on what was most important to the company….profitable growth.”

Key Outcomes
• More than 50% growth since plan implementation
• Enabled company officers to refocus on profitable growth of the companies
• Improved financial standing of Principals
• Increased productivity through development of unified processes
• Increased employee job stability

The Results
Results were immediate, with the principals experiencing both financial and personal gains. The merger of the three companies under the holding company enabled them to refocus on company growth and staff development. Since the restructuring, RE/MAX Select Realty has experienced over 50% growth, added two new locations and expanded staff. Productivity increased with the development of standard, unified policies and processes among the three companies. Efficiency improved by implementing state-of-the-art technological tools to facilitate listings, sales, referrals and global networking.