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W W W. M A I N E B I Z . B I Z 13 N OV E M B E R 4 , 2 0 2 4 F O C U S FA M I LY - OW N E D B U S I N E S S A t Elm City Photo in Waterville, John and Celine Goodine run a second-gen- eration business without a third-generation succession plan. e company's roots go back to World War II, when John's mother Dorothy developed photos in the home bathtub for customers to mail over- seas while her husband Leroy served in the military. During the war he was stationed in Pensacola, Fla., and then Hilo, Hawaii, to work in the Navy photo lab. When the war was winding down, he was assigned to take photos of USO performers entertaining the troops. e couple started Elm City Photo in 1946 as a wholesale operation developing pictures for local drugstores. Today with just one employee on staff, the Goodines offer services from scanning to archiving. Just as they help customers preserve family histo- ries by digitizing photos and videos, they're seeking a buyer to carry on the legacy of the business and maybe take it in a new direction. "We're in our 70s and have a great business that we'd love to see go to someone else," says John, a Navy veteran like his father who enlisted in 1967 right after high school. Elm City Photo "is profitable, it's clean, it's environmentally sound and it's turnkey," meaning that a new owner "wouldn't have to pick up somebody else's mess," he says. On a more personal note, Celine is hoping for a like-minded owner who prizes cus- tomer interaction as much as she does, holding a hand or offering a hug when they're having a rough day. "It's hard to find that person in this modern-day world," she admits. In a state where an estimated 80% of businesses are family-owned, exit planning is a must. Business survival rates thin out with each generation, as reflected in oft-cited statistics that 30% of family businesses successfully tran- sition to the second generation, 13% advance to the third and only 3% make it to the fourth generation. While large, multi-generational companies like Hussey Seating and L.L.Bean tout their deep roots, many of their smaller peers without guaranteed family suc- cession face an uphill battle finding the right buyer. at includes the Goodines, whose four children grew up helping out but have all pursued different professions. 'Seller's market' but lower multiples Broadly speaking, a family business is one in which two or more family members — joined by marriage or blood — hold majority ownership or control. Many belong to the Institute for Family-Owned Business, a Portland- based nonprofit trade group with regular sessions and resources on succession planning for close to 200 members. "You can't get somewhere if you don't have a plan or road map," says Catherine Wygant Fossett, the group's executive director. "And you certainly can't get off the highway smoothly unless you know your exit." ose that have sold their businesses know the road is anything but smooth, requiring a combination of patience, emotional stamina and an understand- ing of market conditions. Recent trans- actions include the sales of Tiny Homes of Maine, a first-generation business that was acquired by Hancock Lumber; and H.A. Mapes, a third-generation, Springvale-based fuel distributor and convenience-store operator acquired by Nouria Energy Retail Inc. in 2023. For those who have yet to take the plunge, market conditions appear to be mostly favorable. "It's still a seller's market, but the multiples and valuations aren't as robust," says Jeff Tounge, a Portland- based sell-side adviser to companies in the lower and middle market. "Strategic buyers in various indus- tries are looking to grow, and you can only grow so fast with organic growth so they're looking to acquisitions. ere's still a lot of that going on." As for what's likely to get buyers' attention, David Jean, director of Altus Exit Strategies LLC in Portland, notes that companies with a robust business model tend to be the most attractive. Find a credit union near you at mainecreditunions.org Family values that drive success. As a family-owned business, you know the true meaning of hard work, dedication, and community. Maine credit unions share those values with you. We're here to help you grow, invest, and thrive. With flexible loans, personalized financial guidance, and local decision-making, we're committed to being a partner you can trust. Let's work together to build a stronger Maine, one family business at a time. C O N T I N U E D O N F O L L OW I N G PA G E » The more families run their business like a business, the better they fare. — David Jean Altus Exit Strategies David Jean, director of Altus Exit Strategies LLC, says that the earlier business owners start exit planning, the better. F I L E P H O T O / T I M G R E E N WAY

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