Case Study: Management

Mike McCabe, owner of McCabe’s Greenhouse & Floral in Lawrenceburg, Ind., along with his wife Theresa, has begun the arduous task of formulating a succession plan for their 33-year-old retail-growing operation. Their son Scott (age 29) and daughter Beth (age 27) are both involved in the business.
 

Mike said both of his children have always been interested in the business and that he never had to “force” them to work for the company. Both children returned to the company after graduating from college.
 

Scott, who graduated from Purdue University like his father, handles the production and financial sides of the business. Beth, who began at Purdue, finished her education at the Art Institute of Cincinnati with a degree in computer graphics. She’s involved with the floral design side of the retail shop and manages the floral department and marketing, including the company’s website.
 

Mike said he and Theresa were very fortunate that they had no outstanding debt when they began to implement the succession plan two years ago. The couple also owns other rental property.
 

“The rental property and land have enabled Theresa and me not to have to rely on the sale of the greenhouse business to finance our retirement,” Mike said. “Too many times growers depend on the sale of their business to their kids or to someone else or the sale of the property to pay for their retirement. Theresa and I didn’t want to do that to our kids.”
 

Mike and Theresa have been giving stock in the business to their children for the past two years. Mike said if and when he and Theresa decide to retire, Scott and Beth will own the company.
 

Mike said the best thing a grower can do in creating a succession plan is to hire an attorney who specializes in that field. He said he did his homework when it came to finding a qualified attorney. He talked to a number of business owners outside of the greenhouse industry who had gone through the process of developing a succession plan.

“The entire process takes a lot of time,” Mike said. “There are a lot of records that have to be collected and reviewed with the attorney. It is a very time-consuming process.”
 

For more: McCabe’s Greenhouse & Floral, (812) 537-4525; www.mccabesflowers.com.