Long-Time Employee Becomes New Shop Owner with Help from Croghan Colonial Bank
For more than a decade, Daniel Long knew he would be buying L&K Auto and Truck Service. Dan was the lead technician at the shop and owner Joe Koluch was glad to know Dan would be prepared to take over when he retired. Established in 1990, L&K is a busy maintenance garage in the heart of downtown Toledo. with loyal customers from as far away as Detroit.
Our goal has always been to keep the business in the ‘family’ – Joe is like a brother to me in so many ways,” said Dan. “We had a collective plan in mind. Joe was going to retire at 65, giving us plenty of time to make preparations to buy the business.
But, of course, life is unpredictable and plans change, and a serious accident forced Joe into retirement a couple of years early. With obligations that could impede their ability to get the required level of financing, Dan and his wife, Darlene, went in search of a banking partner who could help secure the backing needed to achieve their dream.
Their first stop was a conversation with commercial Realtor Jeff Links, from Miller Danberry Commercial Realty, who connected them with Shannon M. George, Vice President and Commercial Loan Officer at Croghan Colonial Bank. Early on in the discussion, Shannon suggested a meeting with the Toledo Regional Chamber of Commerce Small Business Development Center, an invaluable resource that helped prepare the Longs for the transaction.
“We have found a very good partner for innovative approaches in the Small Business Administration. They will guarantee a portion of a loan so purchasers can finance a transaction that may not qualify for traditional commercial loans,” Shannon said. “We are one of the few community banks that do such an excellent job utilizing the SBA,” As a team, Croghan and the SBA worked out a plan to finance the purchase.
Once the deal structure and financing were in place, Dan and Darlene were introduced to Shantel Laird, Assistant Vice President and Cash Management Officer at Croghan, who provided them with support on a daily basis.
“My team and I oversee cash management and identify ways to service our customers, making sure all of the necessary tools and solutions are in place to help them manage their daily functions,” Shantel explained. “No two situations are alike, so we take the time to get to know our customers and design a customized approach to meet their needs.”
Dan heartily agreed. “Right after the sale, Croghan reached out to us. It’s not like, once the deal was done, they were off to the next. They really pride themselves on the relationships they build with their customers, and that means everything!”
Working with the SBA made all the difference, according to Shannon George. “We were very fortunate to use the SBA in this transaction to guarantee some of the shortfalls and make that transaction happen,” he said “Dan and Darlene were able to come in and purchase everything – the building, equipment, and business.”
“I never thought this deal would actually get pulled off,” admitted Darlene. “But the constant communication, guidance, and drive from the team at Croghan gave us the confidence to make it a go. And together, we did!”