Mainebiz

V O L . X X V I I I N O. I V F E B R UA R Y 2 1 , 2 0 2 2 22 W E A LT H M A N A G E M E N T / R E T I R E M E N T F O C U S A restaurant chain's exit strategy A recent deal may also end up in some form of employee ownership, but it's now out of the former owners' hands. Sam's Italian Foods, which is based in Lewiston, was sold to a New York-based company, Teamshares, which buys small companies and then converts them to employee ownership. Terms of the deal were not disclosed. Until recently, there were 14 locations — two in Auburn, five in Lewiston, and one each in Augusta, Brunswick, Dixfield, Freeport, Lisbon Falls, Rumford and Topsham. e Freeport site closed late last year, citing staff shortages, but is expected to reopen. John Boyan, a Teamshares broker who is now president of Sam's, said the goal was to keep the legacy and culture intact. e restaurant chain dates to 1939, but the most recent owner (and seller), Richard Michaud, had worked there with his wife, Wendy, since 1988. He took an ownership stake in 2001 and bought the chain in 2003. ey plan to retire. "Rick and Wendy were adamant about not selling it to just anybody. ey had something they were proud of," broker Dennis Wheelock of KW Commercial/Magnusson Balfour told Mainebiz when the deal went through in early February. Wheelock said he'd been contacted by Michaud in Spring 2021 about finding a buyer. Boyan of Teamshares responded to the listing in late summer. A deal came together by mid-October and it closed Dec. 1. Michaud said he and his wife liked the Teamshares model. "We liked that they represent the ability and the desire to grow the com- pany and take it to its next level," he said. "We liked that they're going to bring growth opportunities for team members. "Restaurants are struggling with staffing across the country. We were no different during this period. But Teamshares has an employee own- ership model that's been very well received and it should be a useful tool to stabilize staffing." Teamshares is a venture-backed firm founded in 2019. "Our three founders started the business because they wanted to make employee ownership the future for small business," said Boyan. e company works with business brokers to find likely candidates. Boyan said Teamshares looks for solid revenue, operating histories of over 10 years, a retiring owner and stable workforce. Teamshares founders tried to address a need in the market, focus- ing on the small business owners who don't have a natural succession, either to family or an employee that wants to buy the company. "[Teamshares founders] wanted to find a buying solution for them. And they saw that a lot of employees have been with these businesses for a long time and are potentially the natural successors, but are unable to buy the business themselves," Boyan said. "So they created Teamshares to buy the business on behalf of employees." e concept is similar to ESOPs, or employee stock ownership pro- grams. "e ESOP structure has been wonderful for many businesses and employees in the U.S.," he said. "But because of the complexity and cost, ESOPs are most useful for companies that are much bigger. Teamshares has developed a much simpler model of employee ownership." He added, "Our goal is for every- one to succeed. We believe that busi- ness success should be a win-win for everyone involved, including custom- ers, employees, stockholders, and the larger community." To date, Teamshares has partnered with more than 30 companies in a variety of industries across the U.S. Teamshares itself has about 70 employees who work remotely across the nation. Sam's is the company's first acqui- sition in Maine. P e t e r Va n A l l e n , M a i n e b i z e d i to r, c a n be r e a ch e d a t p vanal l e n @ mainebiz.biz and @ MainebizEditor Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz Je ssic a Hal l, Mainebiz staff w r ite r, can be reached at jhall @ mainebiz.biz Sponsored by: Networking Sponsor: Presented by: Dedicated to supporting, promoting and growing manufacturing in Maine! TINYURL.COM/MFGSUMMIT2022 N O M I N A T I O N D E A D L I N E : A P R I L 1 5 T H NOMINATE A BUSINESS FOR MANUFACTURER OF THE YEAR TODAY! The Manufacturer of the Year award is given to a company that has noteworthy achievements in the areas of business growth, sustainability, employer excellence as well as dedication to community and the industry. » C O N T I N U E D F RO M P R E V I O U S PA G E We liked that [the buyers] represent the ability and the desire to grow the company and take it to its next level. We liked that they're going to bring growth opportunities for team members. — Richard Michaud Restaurant seller

• Cover