LASAR - Paul and Shery Loewen

[Bob_Belville]

Many of you know Paul is in rehab following surgery. He has meant a great deal to our little corner of GA. My plane carries his parts and mods as badges of honor. We just replaced the gear lock block last month!

Shery posted this message on her FB page within the past hour. It's probably not how the Wharton folks teach how to sell a business but it might work in Mooney Land:

MOONEY FRIENDS: Many of you know that Paul has had health concerns lately, but we want you to know that LASAR is alive and well. Paul is going to be fine, too, but it is time to retire. We have 10 wonderful employees, but none are interested in taking over our business. We would so like to keep the legacy of LASAR going for our employees and our Mooney community. Please private message me if you have any suggestions, or know of anyone who would like to purchase LASAR. We would work with any serious buyer any way we could. It is time, and we are motivated! Please share to other Mooney sites; I'm not sure how to do that!!

 

[StevenL757]

Thanks for posting, Bob.  I wasn't aware of this, but I know my mechanic does quite a large amount of business with LASAR, so I passed this along.  I've never met Paul, but sincerely hope he returns to good health quickly.

Steve

[MooneyMitch]

Wishing Paul and Shery all the very best health and happiness that they so richly deserve.

[RobertGary1]

Just ordered parts from Dan at lasar the other day and had no idea Paul was sick. 

-Robert

[tony]

I wish Paul a speedy recover and I wish Paul and Sherry a relaxing stress free retirement.  I do hope someone with the passion takes advantage of this opportunity.  I have always tried to steer business their way.  LASAR is a resource that the older Mooney community can't afford to loose.  

[Mooney in Oz]

I had the pleasure of meeting and having dinner with Paul and Shery when they visited Australia about 6 years ago and Paul was a guest for our Mooney maintenance program. A lovely couple. I still have a gift given to me from Shery that reminds me of their visit.

I wish Paul a speedy recovery and both the best in retirement.

[Guest]

What does it tell you about this industry when the employees of such a well established business aren't interested in taking it over?

Clarence

[peevee]

22 minutes ago, M20Doc said:

What does it tell you about this industry when the employees of such a well established business aren't interested in taking it over?

Clarence

that they aren't paid well enough to be able to afford it?

[LANCECASPER]

Since most of their employees have been there for years I'm sure they are compensated fairly or they would have left. There's a huge difference in thinking to work for someone else or to own a business. Many people want to punch a clock, collect a paycheck and not have the responsibility. The fact that they would offer the opportunity to the employees first before selling it to someone else says a lot.

[Bob_Belville]

1 hour ago, M20Doc said:

What does it tell you about this industry when the employees of such a well established business aren't interested in taking it over?

Clarence

I suppose it is as much about owning a small business as it is about the specific industry. Employing people, dealing with the government - probably much worse in CA than NC - it takes an optimistic masochist to take it on. Been there, done that, would do it again, so I guess I know who I am. 

[rbridges]

I hope someone keeps LASAR up and running.  That would be a huge loss to mooney owners.

[RobertGary1]

2 hours ago, M20Doc said:

What does it tell you about this industry when the employees of such a well established business aren't interested in taking it over?

Clarence

It's also hard to say without knowing the terms they are seeking. Do employees need to mortgage their homes to raise initial cash, etc. Or maybe they're just seeking long term divided payments from the business could be anything  I guess 

 

-Robert

[Danb]

25 minutes ago, Bob_Belville said:

I suppose it is as much about owning a small business as it is about the specific industry. Employing people, dealing with the government - probably much worse in CA than NC - it takes an optimistic masochist to take it on. Been there, done that, would do it again, so I guess I know who I am. 

So true, I've handled many people who go into business, are extremely good at there craft then fail. Many folks are good with there hands, many good with there business acumen, only those great with both generally succeed. Its a smart person who knows NOT to go into business.

[Bob_Belville]

2 minutes ago, Danb said:

So true, I've handled many people who go into business, are extremely good at there craft then fail. Many folks are good with there hands, many good with there business acumen, only those great with both generally succeed. Its a smart person who knows NOT to go into business.

Yup, and "business acumen" covers a myriad of skill and tasks. Our typical mechanic is probably not as comfortable at promoting himself and his business as he is tearing down an engine. And fearing loss of customers, he might be reluctant to set a shop rate that covers all his costs and provides a fair profit - the mother's milk of a business.

[Bennett]

LASAR is in a very rural setting and I believe that their staffing truly likes the lifestyle there. Plenty of talent, with great competency, but I can understand a reluctance to take on the running of business aspects. Some years ago my father decided to retire from a very successful wood crafting and design business he founded at the end of WW II. He had about 28 employees then, all experienced craftsmen. He offered to GIVE the company to the employees if they would keep the business running. He offered to pay the legal expenses for the change in ownership, and that he would train anyone of them to act as the chief executive, and would draw no salary while doing so. He was proud of the company, and simply wanted to reward his staff for all their hard work over the years. After a host of meetings, the employees asked him to sell the company to someone who would keep it running- they wanted a secure paycheck, and not ownership responsibilities. He did sell the company, but in two years the new owner ran the company into the ground, and ultimately closed the firm. To answer a question, I was not interested in taking over the company as I had my own pathway to follow.

I can't imagine owning my Mooney/s without LASAR, and especially Paul's advice and skills that proved so correct over several decades. Dan with his parts knowledge (and his good natured "we can find it" altitude) is simply irreplaceable. I hope Paul and Shery can find a qualified buyer, but I suspect it will be difficult. I wish Paul a speedy recovery. From conversations with his staff I know that even now he is in daily contact, and very much in charge.

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[DonMuncy]

We all wish Paul and Shery to best. It is really a shame that no one has/can step forward and take over LASAR. Part of the problem may be that Paul and his ability to innovate is such a large part of the business, that it may be hard to run it profitably without him.

[M016576]

1 hour ago, DonMuncy said:

We all wish Paul and Shery to best. It is really a shame that no one has/can step forward and take over LASAR. Part of the problem may be that Paul and his ability to innovate is such a large part of the business, that it may be hard to run it profitably without him.

I think that may be the main issue: if the business is profitable- it probably wouldn't be as difficult to find a buyer- unless the terms for sale are unrealistic based on the boutique nature of the shop and the remote location.

That said, I'm interested, but I need 4 more years to complete my service / orders here... then, after that, I'd need the huge pile of cash to buy the business.  But to me, that sounds like a dream of a retirement career.

Edited January 17, 2017 by M016576

[DonMuncy]

I would bet that Paul and Shery would bend over backwards to try to get someone in to keep LASAR going, but that 4 years might be a killer.

[M016576]

8 minutes ago, DonMuncy said:

I would bet that Paul and Shery would bend over backwards to try to get someone in to keep LASAR going, but that 4 years might be a killer.

Yeah... not much I can do about the timing- Uncle Sam has me by the short hairs

[DaV8or]

I have spoken to some of the employees about the transfer of LASAR. There is interest, but as to date the Lowens haven't been realistic about it. The business has "been for sale" for years now, but just like the guy that can't let go of the plane but knows he should sell, they have over valued the business. In addition, they don't want to break it up (service vs. parts sales vs. aftermarket mods) and they don't want it to move. They want it to continue on as it is for the sake of the employees and frankly I think so Paul can still hang around. He's not really the retiring sort of guy I think.

Anyhow, the word I have heard is they just want too much money for it, but maybe they are now getting more serious. If it were closer to me, like Livermore, or Tracy, or Rio Vista, or Concord, or Stockton (although that would be weird with Top Gun there) I would consider inquiring about it, but there is no way I'm going to move to Lake county and there is no way I'm going to commute to Lakeport and without the employees, you just have a bunch of parts and a name people have heard of, but not much else.

[RobertGary1]

I wonder what he really wants to acccomplosh. Does he want his money out of it or does he just not want to do the hard work and show up at his leaisure and be a retired annuitant? Seems like he could set it up to run itself and just continue to draw a salary if he wanted.

Honesty the value is probably more in the stc's and inventory. You can pick those up and move them. 

[KSMooniac]

I bet the service is far more lucrative than the STC's and part sales, but I also bet none of the three legs of the stool can stand very well on their own, either. Quite a conundrum, and I hope they find a solution that keeps it open and makes everyone happy. A lot of the value is in the employees too. I'm mildly surprised they can't come together to own and operate it...

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[DaV8or]

12 minutes ago, KSMooniac said:

 A lot of the value is in the employees too. I'm mildly surprised they can't come together to own and operate it...

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I suspect it will eventually. It's just going to require Paul to be realistic and do a lot of letting go. With declining health and a motivated wife, this is more likely to come together now.

[Marauder]

Unfortunately, letting go of a business can be an emotional restriction on the process. I don't know much about Lasar and their business, but it could be Paul has a lot of inventory and values it. He also sees value in the STCs they hold and the value to the Mooney community.

A serious buyer would be looking at the books to determine the annual revenue, net operating profit and inventory carrying costs to determine value and a reasonable offer. If Lasar is doing $5M in revenue and nets $200k in operating profit, who would pay $5M for it? Or even $1M?

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[KSMooniac]

The sad reality is that the value of the STC's is in decline with a shrinking fleet that is also perpetually declining in value.

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