Success Stories
Tell us yours.
Cooper Etheridge ’03
Automation Technology INC.
Equipped with a B.S. in mechanical engineering and a Rice MBA, Cooper acquired Automation Technology INC (ATI) in 2004, a fully integrated U.S. manufacturing company with a completely customized valve automation solution. He decided that acquiring a business was the right choice because he wanted an entrepreneurial opportunity but required an income.
Cooper’s search process went through traditional channels such as business brokers, ads and his network. In the end, it was a real estate agent who put him in touch with the owners of ATI. The process took him nine months. He funded the acquisition with approximately half seller and bank debt and half private investors. Ed Williams, a Rice practitioner professor, helped the process by providing guidance and making introductions to investors.
Cooper has been successfully operating and growing ATI for 12 years. The company has expanded to three production facilities from one and now ships products around the world. Cooper’s advice to entrepreneurs looking to acquire a business is:
“Find an Industry where you really enjoy the type of people. When you find the company, make sure the people are well interviewed. The people are everything. Of course, you have to be emotionally aware and mature enough to assess the people. Using the Myers Briggs or other tools on yourself and others can be very helpful. Finally, find something in a growing industry or that you believe has products and services that are ahead of a growing trend. Do not get into something that has too many things to fix.”
Steven LeFors ’16
SAVA Energy
His B.S. in geological engineering and Rice MBA helped inform Steven’s decision to acquire SAVA Energy in 2016, an oil field service company focused on well swabbing. He wanted to acquire a business after reaching a senior position and seeing how the employees were being treated. Steven determined that an existing company with existing clients and cash flows would be easier then starting from scratch.
Steven’s search process began by reviewing hundreds of business through websites such as BizBuySell. Once he found the correct fit he reached out to the respective brokers. The business was under contract when he expressed interest but came back onto the market six months later. The Rice network supported this process by making introduction to SBA lenders, business brokers and providing different points of view during due diligence.
Steven has successfully taken over operations at SAVA Energy and is preparing for the growth that will happen when oil rebounds. His advice to entrepreneurs looking to acquire a business is:
“It is a very rewarding experience to own your own company and have the success or failure be solely in your hands. I think the hardest part is committing to doing it. My suggestion is that once you make the decision internally then you should tell everyone you know what your plan is. This will keep you motivated and the positive encouragement you get from everyone will surprise you.”
Chase Stanzel ’10
H&H Door Company, Inc.
Chase earned a B.S. in construction science and a Rice MBA. By 2013 he acquired H&H Door Company, a turnkey supplier of doors, frames and other hardware. His interest in entrepreneurship was the driving force behind returning to business school and his prior career path. Based on what he learned at Rice, Chase decided that business acquisition was his path to entrepreneurship.
Chase began his search while at Rice through traditional methods and then took a job at a middle market investment banker to be able to continue networking with business owners. Over a four-year period, he looked at many opportunities, did serious due diligence on about eight companies and reached the Letter of Intent stage with one business — all prior to closing a deal on H&H Door. The Rice network supported Chase’s search through coursework, classmates and connections. He is still active in the JGSEO and participates on a CEO roundtable.
Chase has been successfully operating H&H Door Company for three years. His advice to entrepreneurs looking to acquire a business is:
“Having worked professionally in the business of mergers and acquisitions and also completing my own, I am acutely aware of the amount of processes that fail. Do not be afraid to walk away and don’t push a deal that does not feel right. Every deal will have a certain amount of ‘hair’ on it but as long as the foundation is strong and macro-economic tail winds are in your favor, there is an opportunity for success.”