A Change of Exit Plans

Mike Saunders always thought his son would take over Saunders Dental Laboratory, just as Mike and his two brothers had once taken the reins from their father, who founded the laboratory in 1939. Though his son opted to pursue a degree in psychology, Mike and his brothers held out hope he'd be the successor. Things looked promising when his son joined them at the laboratory after graduation. He even developed a talent for the technical work--but never a love for it.

"It became clear that he didn't want to continue in the laboratory and, by then, my brothers and I were in our late 50's, early 60's," says Saunders. He approached key employees about purchasing the Roanoke, Virginia laboratory, but they too were within a decade of retirement and not interested in taking on ownership.

Three years later, Saunders and his brothers approached a local business broker and were surprised when he provided them with six different contacts, resulting in a...