When times are tough (or great), consider building an ancillary business to support your primary- and sometimes the support business will eclipse the other, then keep building for total growth. That's how Knott's Berry Farm came to be. Starting as a...

> a farm stand selling jams and jellies to support the berries farm during the Great Depression

> have Cordelia Knott make her family favorite fried chicken to draw more to the farm stand

> serve dinners in a small tea room next to the farm stand

> open a restaurant to accommodate the huge demand for the fried chicken

> open gift stores and create a shopping area to sell more jams and jellies to customers waiting for or done with their meal

> Build on the community being created, and turn the farmland into a destination

> Start by recreating a family favorite destination- in this case the Ghost town of Calico

> Keep adding more rides and attractions as growth explodes

> Next thing you know, Knott's Berry Farm is an amusement park able to hold 30k a day

> Ride the coattails of nearby Disneyland, now becoming more than a SoCal favorite as visitors from around the US help growth

> Start a CPG food line, and now Knott's jams and jellies are sold in grocery stores everywhere

> Buy the original ghost town of Calico, why not

> Add an adjacent water park to beat the SoCal heat

When the founder's passed, their kids created an exit plan entrepreneurs dream of, maintaining the family legacy by keeping the name and history, the legacy of the founders intact.

$ They sold the food services business to Conagra Brands

$ And the park to Cedar Fair Entertainment Company knowing that if they took the The Walt Disney Company deal on the table, there would be a great chance the family name and legacy would be eventually erased.

I still remember the first time I tried their fried chicken as a little kid, how incredible it was, and the perfect break from the park.

As a young adult, Knott's Scary Farms during Halloween is a must do.

And as an adult I always enjoy the fried chicken, going to the park for fun, and paying attention the whole time to the business lessons all around.

Whether you are planning, still building your empire, maximizing its valuation, preparing for exit, or ready for the exit, we have the tools to help.

Stony Hill Advisors is a M&A Advisory and Management Consulting firm that is built to help its clients drive revenue, increase efficiency, and gain market share with the goal of increasing profitability. Focusing on the fundamentals, using our M&A, capital formation, and other growth strategies, we help our clients create long term options, whether it bean Exit strategy such as being acquired, or an IPO, or, if the business is to continue with a succession plan.

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January 26, 2024