Auto Maintenance Company Navigates the Road to the Future
Business Challenge:
Siegel Distributing, founded in 1972, quickly became a powerhouse in the automotive maintenance industry, accelerating sales and gaining loyal customers over four decades. With the business thriving, owners Dennis and Dean Siegel felt ready to consider “driving off into the sunset.” Yet, as they approached the crossroads of succession, they found themselves with multiple paths to consider and no clear roadmap.
Among the challenges was a promise made to Jeff Newhard, a 30-year company veteran, for a leadership role upon their retirement. However, that informal commitment was still unwritten, and crucial decisions had taken a back seat to daily operations. Faced with the need for a formal succession plan, leadership development, and a strategy to preserve the company’s legacy, Siegel Distributing turned to Compass Point for expert guidance on navigating the road ahead.
Download PDFOwner Challenge:
- No succession plan/buyout or written for key employees agreements in place
- Lacked process to evaluate what options were best
- Ensure smooth leadership transition with clear exit paths for two owners
- Drive growth and cash flow to fund owner buyouts
What Owner Wanted:
- Establish a clear buy/sell agreement
- Plan ownership transition and fund transfer that aligns with owner goals
- Develop a cohesive, aligned leadership team to protect business legacy
- Build value and execute strategy for growth, profit, and cash
Increase in total revenue
over three years
55x
More than
DOUBLED
EBITDA in three years
Successful transition
of leadership and ownership
Results with the Compass Point Six Pillars Family Business Framework:
- New buy/sell agreement formalized and transfer of ownership from family owners to non-family owners completed
- Company culture and employee feeback is positive, reassured and forward-looking
- Successful transfer of leadership roles completed; ownership and leadership team have a broader, more accountable vision of what needs to be accomplished—now and long-term
- Created succession plan for all key roles in the company
- Implemented process to capture and retain the owners’ institutional knowledge for company-wide utilization, implementation and communication
- Enhanced sales and warehouse processes established and implemented
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