Avionics News January 2013 - 30

CHANGE OF OWNERSHIP
Continued from page 29

Jim Cook (left) and Stacey Jordan minutes after signing the paperwork that transferred the ownership of Palm Beach Avionics.

When Spencer Avionics built a new hangar in 2008, it decorated it with barnstorming biplanes over the façade of a real barn.

The Carpenter Avionics hangar.

DeGroot said, but without the corporate entity, “I would have lost my customer base and all my dealerships.” The same is true for the Federal Aviation Administration repair station authorization and real estate leases or titles. “When you buy the business, you own the corporation and everything connected to it,” except the people who work there. “I wasn’t trained in running a business,” DeGroot said, so he never really considered everyday business basics like cash flow. He learned the hard way: When the down payment on a really big install proved insufficient, he had to call the customer for a second down payment. To avoid similar problems, Hemme signed a one-year transition agreement that was DeGroot’s on-the-job business education. From FAA paperwork to work rules and regulations, running a business “was a whole different world, and I didn’t realize how hard that would be,” DeGroot said. The Aircraft Electronics Association International Convention & Trade Show provides most of his continuing education. DeGroot attends the technical sessions, and his wife, who’s the office manager, attends those dedicated to the administrative and human resource topics. Transitioning from employee and co-worker to the boss was

another challenge. Most problems stem from misunderstood responsibilities and perceived benefits. Every shop has a unique personality, so it’s something the new boss needs to think about. “At a small shop, you become the janitor, the maintenance man and everything in between,” DeGroot said. “And I didn’t realize it would be that much time away from my family.” Like many small businesses, his kids worked at the shop part time. Work often became family time; the introduction of a ball turned hangar cleanup into a game of floor hockey. There is no one perfect way to sell a shop, according to DeGroot, which is why he’s starting to create his transition plan now. “We built a new hangar here in December 2008, and I’d like to get that all paid off before I start selling the business,” he said. The plan covers not only the premeditated change of ownership, but contingencies for the unexpected. When Bob and Fran Carpenter founded their eponymous avionics shop at Smyrna, Tenn., in 1981, a succession plan was near the bottom of the to-do list. In the 21st century, they never really got further than the name of the long-time employee who had taken charge when Bob retired. Around the same time, Fran said they looked into sellContinued on page 32

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Avionics News January 2013

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