Daniella Devine shares how she became the third-generation owner of Peacock Floors, a San Francisco commercial flooring business. After working in city government and returning to her family’s company, she bought the business from her father and hired a general manager before closing to support the transition. She discusses the realities of taking over, including unexpected operational problems, customer challenges, and the need for more working capital than she initially expected. Daniella also describes buying a self-serve car wash near Phoenix and the financing difficulties that left her with costly 24% interest-only payments. Her advice for prospective buyers is to carefully analyze cash flow and accounts receivable, secure financing before setting a closing date, and prepare for long customer payment cycles.

Takeaways:

1. Plan for more working capital than you expect. Analyze cash flow, accounts receivable, and customer payment terms not just the business’s stated earnings.
2. Don’t rush financing or set an artificial closing date. Make closing contingent on securing suitable funding, and compare loan options carefully.
3. Prepare for the realities of ownership. Plan for post-close operational problems, customer transitions, and the people needed to keep the business running and growing.

You can reach Daniella via https://thedanielladevine.com/

John Martinka
Jessica Martinka

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