Local-First Succession Plan: Matt Cortez of DeVries Moving

Matt Cortez is president of DeVries Moving Packing Storage, the Spokane moving company Mike DeVries and his dad, Bill, started in 1981. When larger out-of-state movers began making offers to turn DeVries into one of their branches, Matt, who joined as general manager a little over eight years ago, walked Mike through what that kind of sale usually means for a local brand and its office staff. He explains the owner-financed succession plan they built instead, why an employee-owned ESOP did not make sense for a company their size, and how employee partners can keep ownership moving to the next generation.

Key takeaways

• When a bigger company buys a local business, Matt says the local name may stay for six months to a year or more before it goes, and office roles the buyer's corporate office already covers usually go after the transition.
• Drivers, crews and salespeople are usually still needed after a sale; office staff are most at risk. Protecting long-time employees, some with 10, 15 and 20-plus years at DeVries, was a huge part of the decision.
• DeVries handles local and in-state household moves, interstate moves as an Atlas Van Lines agent of 45 years, commercial moves and office furniture and cubicle installation, military moves including local work for Fairchild Air Force Base families, and warehousing for hotel and hospital furniture and equipment, including MRI machines that weigh about 5,000 pounds.
• The sale was valued on the company's assets plus a little goodwill toward current customers. Matt says outside offers came out very similar because it was an asset purchase; one big difference in selling to him and his employee partners is that the sellers are paid over time instead of in one check.
• An ESOP did not fit a company DeVries' size: by the time the selling owners, the trust, the bank and the lawyers were paid, Matt says there would not be anything left over for the employees.
• Instead, Matt bought the company with employee partners, including the operations manager who is now vice president of operations, a salesperson who started there in high school as a field helper, and the office manager, so shares can pass to the next generation.
• Matt's best business decision was coming up with the succession plan with the DeVries family. His local shout-outs go to three nonprofits: Christ Kitchen, the YWCA and Family Promise.
• Over the next 12 months, Matt wants to grow the business and hopes the real estate market turns around. DeVries is celebrating its 45th year; call (509) 924-6000 or visit the website. As Matt puts it, "We're a little bit old school. We like chatting on the phone."

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