Case Study: The Escarpment Tea Room’s Unlikely Buyer
When Teresa Marto encountered the opportunity to buy the Escarpment Tea Room, she wasn’t actively looking to buy a business.
As an insurance broker for over 20 years, most recently at the Placement Group, it was a big decision. Like a lot of people during COVID, she became restless with her corporate life and dreamed of doing something else. “I gave it some thought and put it aside,” Teresa told BuyAndSellABusiness.com. But the posting for the tea room kept appearing on her feed. “I took it as a sign.”
Under the ownership of Edwina Doddington, the Escarpment Tea Room had become well known for its British high tea and delicious home-baked goods. She listed the business as part of her retirement plan, where she would move to Vancouver to be closer to her family. She had owned the establishment for the last nine years.
The sales process began earlier this year. From the original inquiry to the final signing of the purchase agreement, the deal came together in just six weeks, something Teresa attributed to a unique bond she and Edwina shared from the start. “She did have other people interested in the business,” Teresa said. “Edwina and I have a very similar past — on more of a personal than business level. I believe that’s why she chose to sell to me.”
Though the sales process was less conventional, the due diligence process was relatively standard. Teresa reviewed the business’ accounting and tax summaries for the past five years and spoke with the landlord about the existing lease agreement. She diligently combed over online reviews and discovered that it was the only tea room in Milton.
Structuring it as an asset deal also simplified the process for Teresa, though she would continue to benefit from the business’ name, reputation, and existing clientele. Registering the business provincially and federally was a challenge, but nevertheless, Teresa concluded that it was a great opportunity. “I could step in and start making money to cover my expenses right away, and I could grow the business with new ideas,” she said.
“It is a scary experience giving up a stable paycheck,” she said when asked what advice she would give to other entrepreneurs considering a similar move. “But if you push past that fear, for me, there was a calm that came over me. I knew it was the right decision.”
Edwina will stay on for a few weeks following the reopening on August 15 as part of a transition plan to allow her to say her goodbyes and introduce the new owner.
The official Grand Re-opening of The Escarpment Tea Room is on Saturday, September 9th from 11am – 1pm. Edwina and Teresa would love to see you drop-in!
Address:
104 Tremaine Road
Milton, Ontario, Canada
Opinions expressed here by contributors are their own.
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