Mainstreet Art Centre
In 2006, Frankie Johnson, a professional artist and business owner, faced an unexpected challenge when her business partner decided to dissolve the partnership. Frankie quickly sought guidance from her local SCORE chapter and learned how to successfully organize a buyout and new business plan.
While Frankie felt confident that she could run Mainstreet Art Centre as the sole owner, she had no idea about how to proceed with the buyout, particularly since the partner wanted the stake to be paid out in cash. She assumed that it’d take a business loan to execute the buyout, but even that was unknown territory for her.
As the new owner of Mainstreet Art Centre, Frankie reports that the company has been able to maintain a healthy level of profitability. The growing business provides a wide range of classes that are popular for professional artists, budding talents and children just discovering the fun of art. In addition, the center also sells frames, equipment and art supplies and hosts demonstrations, workshops and other art-related events.
Volunteer mentor Seymour Stoller met with Frankie and carefully examined Mainstreet Art Centre’s financials. He felt that the buyout could be funded entirely from company profits and recommended a structure for the buyout proposal. The details were worked out over two meetings and, after a series of negotiations; Frankie’s partner accepted the proposal. Four months later, Frankie owned Mainstreet Art Centre free and clear.
"Buyouts were a complete mystery. I was a member of the chamber of commerce, which sponsors the local office of SCORE, so I went to SCORE," says Frankie.