Small Business School
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Small Business School  last update: MAY 2007  |   go to the homepageSmall Business School
Small Business School
Small Business School
Small Business School
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Going For The Gold and Getting it
Small Business School
Overview Transcript Case Study Video
Hattie Bryant introduces us to two business owners who sold for millions after working for years.
Hattie Bryant introduces us to two business owners who sold for millions after working for years.
Small Business School
Small Business School
Small Business School
Think About Selling From Day One
Small Business School

HATTIE: Hi, I'm HATTIE Bryant. So often television portrays the dark side of business, the underbelly of exploitive behaviors. It seems to be more interesting to Hollywood than stories about creativity, value creation and self-actualization.

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Transcript Segments
Small Business School
1. Think About Selling From Day One
2. Take Charge Of Your Exit
3. Hire Experts
4. Calculate Your EBITDA
5. Build Goodwill
6. Play Hardball
Small Business School
7. Provide Buyers Continuity
8. Deliver The Numbers
9. Lean On Your CPA
10. Know When To Let Go

Here you found at least one show that is about good people doing good things, creating jobs, creating wealth, and making our world a better place. Business leaders recognize that one way to grow, to increase shareholder value, is to acquire well-run small businesses.

Today you'll meet two small business owners who sold their businesses for millions to publicly traded companies. One was chased, and the other did the chasing, but in the end, both are smiling. Let's find out why.

TRACY MYERS (Co-founder, Advertising Arts College): I wasn't thinking about retiring. I thought, `Oh, I'll work for maybe another 10 years.' And got a phone call.

BOB ORENSTEIN (Founder, International Wine Accessories): It was like being a rat on a treadmill. I was running and running and running, and it was time to figure out, `How do I get off this treadmill?' And there were different ways.

HATTIE: (Voiceover) Tracy Myers and her partner started The Advertising Arts College in La Jolla, California.

TRACY: I'm taking you to our very first location. In 1981, we rented 1,100 square feet in this little center in La Jolla, California.

HATTIE: It's tiny.

TRACY: Tiny, cute little center. And we were here from 1981 until 1984. And we had 60 students in 1,100 square feet when we left. Unidentified Instructor: ...layout where the hands are at.

HATTIE: (Voiceover) The school grew, offering curriculum design to prepare students for a career in advertising. From its first course called the communications career course to becoming a fully accredited private post-secondary for-profit institution granting four-year degrees, the school thrived. Unidentified Instructor: ... every time I hear myself about to say...

HATTIE: In October 2000, The Art Institute, a growing enterprise traded on the Nasdaq, bought the business from the entrepreneurs who had founded it.

TRACY: I think I was in shock at first. I kind of thought someday it would be nice to be able to sell the school, and everybody thinks about an exit strategy. Do I have one? Do I need one? Is there someone to pass this to?

BOB: First thing I'd like you to do is I'd like you to just pick up this glass, roll it a little bit, and try to smell the aroma.

HATTIE: (Voiceover) In 1983, Bob Orenstein started International Wine Accessories in the spare bedroom of his condominium. The delicious business Bob built is a catalog retailer with 450,000 customers who find in these pages what they need and want for the wine lover's lifestyle. BOB: But remember, this is functional also.

HATTIE: (Voiceover) Bob grew the business to over $20 million in sales, and in 2000, he sold to the $5 billion conglomerate the Foster's Group. After the sale, he promised to stay on as president for three years.

BOB: I really didn't know the time was right. I knew that the time was coming, so what I did is I recognized it was going to take a few years to get there. Little did I know that it was going to take 4 1/2 years to get there.

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