Selling tire shop best for retiring father, aspiring son

Behind the small print and signed documents and handshakes of every M&A transaction, there lies a story.

Many share recurring themes: owners wanting to retire, buyers seeking to grow, both looking to capitalize on a tire industry that keeps the world perpetually mobile.

Here is the tale of one seller who decided the debt was too great to take on and instead sold the business to a fellow owner and friend.

It was a difficult, yet common sense idea for Bob Fox and his son Nick to sell their Point S dealerships to fellow Point S USA member Eric Gill.

The deal closed on the sale of their four shops in late April. The tire dealers knew Gill well; they served on the Point S board, as did Gill.

At age 67, Bob wanted to retire, having been part of the tire business for four-plus decades. Both men thought it unwise for Nick, 38, with a wife and four kids between the ages of 5 and 14, to borrow the money to buy out his dad and thus swim in a turbulent sea of debt.

“We grew the business to be so valuable that it didn’t make sense to take out a huge loan to let dad retire,” Nick said.

“Dad didn’t want to take a risk. I was hungry and wanted to grow. Eric provided a resolution.”

So the Foxes made the decision to sell their four Montana shops: J&J Point S and Capital City Point S in Helena; and Fox’s Point S Tire and Jerry Noble Point S in Great Falls.

As part of the deal, Nick has become a Gills Point S district manager, for now overseeing shops in Utah and Idaho. He also said he has the option to buy shares in the private company.

“It’s certainly a change,” Nick said, “but ultimately, it’s a good thing. (Gills Point S Chief Operating Officer) Shane (Vorderstrasse) has given me a lot of trust and are letting me make an impact.”

Nick called the Gills leadership team “very smart people, very good operators, and we have aligned visions of what we can accomplish together.”

It was important that the Foxes not only sell to a fellow member of the Point S family, but also sell to a fellow, family-owned tire dealer who would treat their former employees well.

“A lot of people in the Point S group are close friends that I care deeply about,” Nick said. “I’m a relationship person. Those are important to me. I didn’t want to do anything to sacrifice their success. Keeping stores in the group was important.”

And, he said, ensuring his 43 employees had a place in the Gills organization was equally important. Ultimately, all were offered their same position, at the same, or increased, salary, Nick said.

“There’s more potential for them,” he said. “There’s excitement for the future.”

One of the benefits of the sale, Nick said, is more family time.

And it was evident it already was paying benefits: Nick was sharing his story while vacationing in Disneyland with his family.

“I’m not dead. I’m still here to make a difference in a world,” Nick said. “This is just a different piece of the puzzle in the story of life. It’s just another adventure, and we’ll see how awesome we can make this portion of it.”