TRANSITIONS

Family C

BUSINESS All in the

urrently approximately 30% of ARA members are going through a transition of their businesses from one genera- tion to the next. Hindsight is 20/20 and it’s often help-

ful to learn from those who have gone before us. Two recyclers, Norman Wright and Kelly Roepke, share stories from their business transitions to the next generation.

Norman Wright, right, and his father, Hyman, celebrate their 50th anniversary in 1995. They are now celebrating their 70th this year.

32 Automotive Recycling | September-October 2015

Norman Wright, Stadium Auto and Truck Parts, Inc. bought the business from his father in 1971 when the business was operating as a small salvage yard. His father had leased the property to another renter who had a different use entirely for the prop- erty. Wright’s father was in the process of liquidating his busi- ness when the lessee backed out of the lease. Wright (who had been working as an accountant at the time) stepped in to pur- chase what was left of the busi- ness and assumed the lease. He left the accounting profes- sion and has never looked back as he assumed the job of running Stadium Auto and Truck Parts, Inc. His father worked alongside

Two longstanding automotive recycling businesses have weathered the years,

and even sometimes more difficult, a family generational transition. BY MICHELLE KEADLE-TAYLOR

him until 96 years of age, when his health prevented him from getting down to the business. Although Wright ran the business, his father held many posi- tions over the years from offering his advice, making deliveries, customer liaison at the front desk, even to constantly buying and filling the soda machine. Today, Wright is in the process of transitioning his business. Several key steps have been taken already. “The property has already transitioned into a Limited Liability Corporation (LLC) that will enable all of my children to benefit from the property, whether they are employed there or not,” said Wright. “The LLC belongs to all of them and any of my children who choose to stay involved with the business, will lease it from the LLC. They will purchase my stock over time according to the laws regarding family business.” Several years ago, Wright attended an ARA educa- tional session on transitioning your business. As a result, he took some of the offered advice like acquir- ing an attorney and an accountant to aide in a smooth transition of his business to the next generation. “The most challenging thing about going through a generational transition is making up your mind to do it,” said Wright. “We tend to put retirement off for a variety of reasons. It’s important to realize that tran- sitioning your business is not an overnight process. It’s vital to have a step-by-step plan that designates respon- sibilities as you move through the transition. The biggest mistake is to think you are going to live forever and have no plan for the future. A sudden death in the