(Indianapolis, IN) The American economy depends on the success of closely held businesses. But it’s surprising how many close their doors after just one or two owners. It doesn’t have to be that way for Flooring America and Carpet One store owners, two divisions of CCA Global Partners. “Some stores have been in the family for generations, and we look forward to ensuring that those businesses keep thriving in the communities they serve,” said Vinnie Virga, President of Flooring America.
Castle Wealth Advisors, LLC signed an agreement with CCA Global Partners, the world’s largest floor covering retailer. “The agreement positions Castle Wealth Advisors to provide business valuations, as well as succession and retirement planning services to Flooring America and Carpet One buying cooperative store owners,” said Mr. Gary Pittsford, CFP®, President and CEO of Castle Wealth Advisors, LLC.
“This partnership is another benefit for our store owners,” said Mr. Virga. “Most of them run small, family-owned businesses.”
A division of CCA Global Partners, Flooring America generated $1.7 billion in annual sales in 2006, operates 600 member-owned stores with nearly 500 members in the United States and Canada. There are 11 Flooring America and 16 Carpet One stores in Indiana.
The floor covering divisions of CCA Global “has many store owners on the verge of retiring in the next few years,” said Mr. Pittsford, “and they need help either transitioning their business to the next generation or selling to a new owner and locking in their retirement income.”
“Working with Mr. Pittsford will provide our membership with a high level of expertise,” said Mr. Virga. “The tax and legal issues surrounding succession can get very complicated.”
According to Mr. Virga, Flooring America is the only floor-covering cooperative that has created this kind of partnership for the benefit of its membership. “When our members succeed, we succeed, and we firmly believe that working with Castle Wealth Advisors will help our member stores thrive for generations to come.”
“The company’s senior executives have become very proactive in providing a whole series of new financial services for their members,” said, Mr. Pittsford. “By doing so, they will not only help some of the members improve the value of their company, but also help those members open new stores if that’s their goal, or transfer a business successfully to their children or key managers.”
While businesses are bought and sold everyday, “store owners have only one chance of selling their business,” said Mr. Pittsford, “and any mistake can drastically affect a family’s net worth and retirement income.” That’s why business valuations are important for the sale of a company. “A potential buyer want’s to know how much the company is worth,” said Mr. Pittsford. “They must put a price on stock for probate,” he said, “divorce or a sudden accidental disability of the owner is also reasons why a valuation is important.” Besides these life events, the Castle Wealth Advisors agreement with the Flooring America and Carpet One divisions of CCA Global will provide store owners the resources they need when retirement looms and the time for a leadership transition or sale of the business comes.
“Reliability and an understanding of the needs of the small business owner, Castle really excels on both counts,” said Mr. Virga.
