Pendleton Street Advisors

Case Study 3

Case Study 3

 

Divvying Up a Family-Run Sand and Trucking Operation

After four generations of family ownership, Jason and his two older brothers had begun to question whether it was time for an exit strategy. While Jason wanted to continue working for a few years, his brothers were ready for retirement. Not wanting to be left in a bind, Jason contacted his estate planner to see what his next step should be. The suggestion? Work with Pendleton Street Business Advisors to formulate a plan.

“Anytime you have a business that you grew up with, when that’s all you’ve ever done, it’s a big step to think about giving all of that up,” Jason says. “We also wanted to make sure everyone — my wife, my brothers’ wives, all the family involved in our two companies — was comfortable with whatever we decided. We didn’t want to put strain on our relationships. And then of course, there was our worry that we wouldn’t find a buyer with our same values. Just a lot of moving parts.”

Pendleton Street helped all three couples involved unbraid their personal and company finances, sell the family’s sand business for eight-times the profit of the company, and then negotiate so Jason was able to buy out his brothers’ share of the trucking operation. By bringing objectivity to the process and showing each stakeholder what he needed to retire , Pendleton Street was able to facilitate a deal that all involved parties felt was fair.

Today, Jason and his wife, Leslie, continue to run the family’s trucking business, although they’ve begun to transition leadership to Leslie’s daughter. As they prepare for the fifth generation of family-led management, Pendleton Street will be right alongside daughter and parent to help them structure a succession plan that benefits both sides. “Going through the process we did, building that kind of trust — it just all meshed,” Leslie says. “They really fit into our environment here, as far as our work and family business, and we feel like we’re getting really good guidance.”