Bishop & Company brokered the sale of J.G.I., Inc., a Charlotte company doing business as Signs, Etc. to Wabaytay Holdings, Inc., on September 3, 2004.  Signs, Etc. is one of the oldest and largest full-service sign manufacturers in Charlotte and the surrounding region.  Signs, Etc. has made high profile signs such as the Top Gun roller coaster sign at Paramount’s Carowinds theme park and the tall pylon signs at Ballantyne Commons East.  Most of its signs are for real estate developers such as Beazer Homes, Centex, Shea Homes and Ryland Homes.  Spencer and Sherry Brower of Charlotte own Wabaytay Holdings.

John Iyoob, who started in the sign business at the age of 17 said, “After 26 years, I was ready to turn my company over to someone who could continue the growth and take care of my employees.  I am confident Spencer and Sherry Brower will build on our tradition.”  All Signs, Etc. employees will be retained and the company will operate under the Signs, Etc. name.

Although Bishop &Company represented the seller, J.G.I., Inc. , doing business as Signs, Etc., in this transaction, we thought it might be interesting to hear what happened from the buyer’s perspective; so we asked freelance writer Scott Martin to interview the Browers about their buying experience:     

Browers Shift Gears, Purchase Sign Business

by Scott Martin, freelance writer

Sherry and Spencer Brower were enjoying great careers with great companies: Spencer with Accenture then LendingTree and Sherry with ESPN Regional, Arthur Andersen, and Corporate Benefits Group.  But despite success in the big-league corporate world, both Sherry and Spencer started to look for a small business to purchase.  The Browers were thriving in the corporate environment but, after thinking about what they really wanted to do with the rest of their professional lives, felt that owning and running a small business would be more rewarding, spiritually and financially.  The Browers, both in their mid-30s, thought about simply leaving their respective positions and setting themselves up as professionals – Sherry as a CPA, Spencer as a business consultant – but both wanted more than a non-stop quest to bill as many hours as possible every week.

So in 2001, Sherry, who is a CPA, started the search for a business, beginning with a set of criteria:  no restaurant or food service, no retail, no high tech, no chain of convenience stores - and preferably within easy driving distance of central Charlotte.

With no prior experience looking for businesses to buy, Sherry found initial experiences somewhat eye-opening.

“I guess I was a little naïve at first,” she says. “I thought it would be take three months and be extremely easy.  I learned very quickly that every business is for sale for a reason.”

The Browers looked seriously at several businesses.  They investigated a rocking chair company, a medical supply house, a motor oil distributorship, a cardboard box manufacturer and even a company that distributes French drains.  They also dealt with several business brokers – another eye-opening experience.

“Many of them had no clue at all when it came to a thorough and objective look at the numbers,” says Sherry Brower.

Thankfully, Sherry’s background as a CPA let her look objectively at each company’s balance sheet and she was able to spot shaky financial reporting.  Throughout the evaluation process, Spencer’s background also helped as he could quickly assess the organizational efficiency (or otherwise) of a prospective acquisition. 

Sherry spent almost three years going through the seemingly Sisyphean task of talking to brokers, talking to business owners, running the numbers, assessing the ongoing viability of the business, then going home frustrated.

Through their lawyer, the Browers met with David Bishop, an investment banker/lawyer with a CPA background and a successful track record of putting business buyers and business sellers together.  Having been through three years of searching, Sherry was able to supply Bishop, a partner in Bishop & Company, with exact criteria.  It was not long before David told the Browers about a company whose owner had been thinking about selling his business and was now ready to talk seriously with prospective buyers.

“I had met with numerous business brokers and David was by the far the best,” says Sherry.  “Every time we had a question, David was really good about trying to find an accurate and straightforward answer.”

Bishop was representing John Iyoob, an ‘American Dream’ success story who had started his business, Signs, Etc., in his garage when he was a teenager in 1978 and had grown the shop from one employee (him) to 30 employees in an expansive 40,000 square foot facility on South Boulevard just a few miles south of the SouthEnd area.  Iyoob had grown his business in a very hands-on and customer-driven fashion but was unsure about tackling the organizational, marketing and financial challenges of expanding his business further to meet burgeoning demand.  Approximately 70 per cent of Signs, Etc.’s business comes from real estate companies; the business offers a full range of signage services and programs for everything from restaurants to major public facilities like Paramount’s Carowinds.

“When I first looked at it, I liked it because it had a great track record, excellent employees, a solid product line and the potential for additional growth,” says Spencer Brower.

Despite some last-minute glitches that could have derailed the deal, Spencer and Sherry Brower took over the business this past fall.  Iyoob had not told anyone about the potential sale and so it came as a bit of shock to Signs, Etc. employees when they gathered for what they thought would be a fairly routine, early morning meeting.  An hour later, Spencer Brower arrived to quell any fears and assure the employees that it was business as usual for the foreseeable future; and that he and Sherry were there to take the business to the next level while enhancing opportunities for current employees.

“The business was a good fit because the areas that could use some minor improvement fit our skill set,” says Sherry Brower.  “We’re installing some financial controls and operational efficiencies that will help us expand and grow the business.”

The Browers also plan to get their marketing boots on and Sherry now scours local publications daily and weekly for potential opportunities.  She and Spencer are routinely on the phone with prospective clients but are relying on the expertise of the employees to handle the important manufacturing work.

“We have a fun atmosphere and I’m quickly learning that nobody is more important than anyone else,” adds Brower.  “That’s not really the case in a big company.  I’m really enjoying the change.”

During the all-important financing phase, Sherry Brower talked with four banks.  One would only finance half the deal, two wanted to send the Browers through the Small Business Administration (the California branch) and another (CCB) was ready and willing to lend the money.  One of the other banks tried to barge in at the last minute with a better rate but Sherry Brower stuck with CCB.

“When someone asks you for a quote, you should give him or her your best offer first,” she says.  “And that’s our philosophy too.”

The Browers agree that the deal to purchase Signs, Etc. would probably not have taken place without David Bishop.

“David was a great facilitator in bringing a buyer and seller together,” adds Spencer Brower.

Which, for two people looking to leave Corporate America and manifest their own vision of the American Dream, was very important.