Vince Molnar purchased Riverland Nursery in December 2017 with his business partner, Dan McKinney. Vince had managed the company for two years prior to purchasing it. It was obvious to Vince that under the previous ownership, the business was stagnating. There was a complete absence of long-term vision, organization, and leadership. After managing the company for two years, Vince became frustrated that he was not able to help change the culture of the business, or direct it in ways he felt would help grow the bottom line. He was confident that his vision and skills could take Riverland in new directions. So, in December 2017, he partnered with Dan McKinney, a local Realtor and entrepreneur, and together they purchased the business.
The SBDC and Mr. Peter Keating were incredibly valuable throughout the entire transitional period. Mr. Keating advised Vince and Dan of various ways to finance the purchase. After several meetings with Mr. Keating, Vince and Dan decided to purchase the company with a 33 percent down payment, and a 60-month amortized repayment schedule. Mr. Keating offered examples of purchase agreements and financial documents which were very helpful in constructing the legal paperwork necessary to complete the purchase.
Mr. Keating was a wonderful educator, and helped Vince and Dan understand the intricate details regarding the purchase. Goodwill, inventory, fixtures, and tangible and non-tangible assets were all brought to the table, and Mr. Keating helped define the value ranges of these items. After reviewing annual financial documents, including tax returns, a formal offer was made to the sellers.
After 12 months, sales increased $104,000, and three new employees were hired. Advertising budgets were increased, driving in a new customer base that had previously gone untapped. Mr. Keating continued to play an important role to Vince and Dan, and through discussions with him, new services were offered such as commercial design and installation. New products like citrus trees and decorative pots and containers were added to merchandise offerings. The business now has eight employees, including a full-time salaried manager, and is on track to break $1M in sales this year.
Check out Riverland Nursery’s Success Story Here: