Sargent’s Garage was a successful four bay automotive service center located north of downtown Des Moines that employed three mechanics and was owned debt-free by two partners. The partners decided to dissolve their partnership.

Graham Gormley, who was the partner that worked in the garage, decided to buy out the other partner, but he needed to find financing to purchase both the business and the building from his partner. Unfortunately, negotiations failed in trying to work through the buyout and Graham needed help.

Graham came to the Mid Iowa Small Business Development Center in Urbandale for help. He and his wife attended many one-on-one SBDC counseling sessions to restructure the business, which included gathering information, writing a business plan, addressing change and transition, and figuring out what his projections would be if he were to take on the business alone and add the debt onto the purchase. SBDC counselors also gave him useful information on various funding sources and helped him find a lawyer and a CPA for the business.

Graham Gormley was able to get the necessary financing to buy out his partner. He hired an additional employee, and doubled the business’ cash flow within six months of the purchase. With planning, persistence, hard work, and expert guidance from the Mid Iowa SBDC, Sargent’s Garage has evolved from a dysfunctional partnership to a significant, successful, sole proprietorship auto service business.

Graham says, “The SBDC counselors assisted me with the cash flow analysis, the business plan, and to persevere in the purchase of my business. I am very grateful for the assistance provided and will be using their assistance to continue to grow my business.”