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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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