How George Bavolak Sold the Family Business

George Bavolak, now retired, was a long-time, active member and a Past President of the Electrical Association. This is the story of how he was able to sell his family business and start enjoying his retirement after 43 years in business.

Karl Bavolak, George’s father, started Bavolak Electric in 1971 and it quickly grew from repeat business and referrals. Karl’s philosophy was to take the time to help the customer refine their needs, provide choices so the customer could decide what would give them the best value for their budget; and required that “all employees cheerfully, safely and legally provide installations with the highest possible level of value.”

After graduating from Hamline College with a degree in physics, George joined has father in the business bringing to the company his technical and design skills, complementing his Dad although, they didn’t always see eye-to-eye.

When George turned 70, he started to think about retiring. He had a son working in the business, but his son was not interested in continuing the family business. To create the best possible exit strategy, George decided hire a professional who focused solely on business valuation and sales. After doing some research, he contacted Richard Jahnke at Sunbelt Business Advisors to find a suitable buyer for his business, based on Richard’s success at selling electrical contractors.

Drawing from a network of more than 20,000 potential buyers, George and Richard narrowed the field of prospects down to those buyers who either had a Masters Electrical License or a Journeyman who could pass the exam while operating the business with George as an employee/consultant. It was a bit of a roller coaster ride as the first buyer did not secure his necessary SBA financing. The second buyer was a plumbing and HVAC contractor. That buyer backed out after his company sustained two serious workers’ comp injuries during the due diligence period.

The successful buyer was Ryan Laganiere. Ryan already had his Masters License and he had recently tried to close on the purchase a much larger electrical contractor in southeastern Minnesota. That deal did not materialize but allowed Ryan to get his SBA financing lined up with Platinum Bank. Ryan’s wife, Bobie, had an accounting background, which was perfect because George’s bookkeeper wanted to retire and Bobie took over the accounting responsibilities. George worked together with Ryan on the transition, introducing Ryan to the key customers and employees. For George, the relational side of the business was just as important as the transactional side. He found a buyer that was just as committed to his people and customer service as he and his father have been since 1971.

George said, “Richard Jahnke helped me navigate the sale to get to the next stage of my life.” Richard recently caught up with George, who was on a “Photo Safari” across the southwestern United States with some of his friends. Photography has always been one of George’s hobbies he can now pursue.

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For over 20 years, Sunbelt Business Advisors has been helping business owners achieve smooth transitions for themselves and their employees. It has become one of the fastest growing firms in the nation. Richard has managed the sales process for over 100 businesses and is specialized in selling electrical contractors. If you want to learn how much your business is worth, contact him at 612-418-4754 or, rjahnke@sunbeltmidwest.com for a no-cost, confidential business valuation.