McCormick Tile and Stone

One Stop Granite Shop

190 Turner Drive Suit D Durango, CO 81303

970-247-9710 | Visit Website

McCormick Tile business partners Rick Klatt, Brian Sims and Justin Goodwin consulted the SBDC in April of 2012 for assistance in purchasing McCormick Tile from Paul McCormick, who had owned it since 2002.

At the time, Klatt was the third generation in his family running a travel business started by his grandfather. His cousin Justin Goodwin was a partner and fabricator/installer for McCormick Tile and learned that it was for sale.

Things in the travel business were changing and Klatt saw a great opportunity with McCormick. An SBDC consultant helped Klatt close the travel agency and transition to McCormick Tile.
“The SBDC answered so many questions and became personal friends.”
Klatt needed to learn about the tile business that is 75% granite counter and furniture tops. They sell tile, ceramic tile, porcelain, travertine slate and natural stone. They do all fabrication on site and install counter tops and other granite based products.

An SBDC advisor overlooked the financial reports from the existing owner to determine a fair purchase price for the business. They examined the Profit and Loss statements and the balance sheet to get an accurate figure for how much revenue the business was generating. She assisted with the paperwork to apply for the bank loan by preparing a market analysis and projections.

Additionally, they built a budget and cash flow projections to determine how long it would take them to earn a return on their initial investment. Peterson explains, “We discussed many aspects of the selling/buying process to be sure they took as much as possible into consideration at the time of the transaction. This included a non-compete and examining other potential issues that could arise.

Klatt shares, “At one point we considered moving the business from Bodo Park to near Three Springs. The SBDC provided a market analysis of the traffic flow in that area. After analyzing the cost of the move and building a warehouse, we decided to stay where we were.”

A year after they purchased the business Klatt and Sims approached Peterson again regarding purchasing a new piece of equipment. She looked at the financials and decided it wasn’t a good idea and told them to wait. “Her opinion is like the bible. We did exactly what she told us to do,” he said. "The SBDC has provided an amazing amount of help. It was a service I didn’t even know was available in the community. They are always available to bounce questions off of". The business is doing great and sales are up 28% from 2012. “The local economy is doing great. New construction and remodels are picking up. We’re looking forward to a good 2014!”

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