Turning over a business to a new owner is never easy; contracts and paperwork still come with uncertainty. Will a new owner enhance the business as well as carry on its traditions?
When Chris DePalma and Jim Hennessey, the owners of Urban Candle, decided it was time to retire, they needed a trustworthy individual to take over their South City business and fuel its future.
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Fortunately, they already had someone in mind: their niece, Grace Butz.
The couple’s candle company, located on Hampton Avenue, specializes in natural, non-toxic candles that are 100 percent soy and phthalate-free with cotton wicks. The company logo—a St. Louis fleur-de-lis with a candle inside—reflects their love of the city.
“We call it the ‘flame de lis,’” DePalma says.
After seven years of running the business, the husband-and-wife duo were ready to pass the torch, but they wanted to make sure their company would be in good hands.
DePalma and Hennessey met up with Butz in New York last year to throw out their idea. Later, they saw her at Christmas dinner last December and discussed the possibility again.
“I could tell her wheels were turning,” says DePalma.
A St. Louis native, Butz hadn’t lived in St. Louis for nearly a decade; after college at the University of Kansas, she headed to New York City where she worked in marketing—part of the reason she was interested in taking over Urban Candle.
“Chris and I have a really similar work background,” Butz says of her aunt. “She comes from a marketing and sales background, and I do as well. I didn’t have any immediate plans to move to St. Louis, but this just seemed like such an exciting opportunity, because the company has been really fun to watch grow over the past.”
While DePalma and Hennessey felt confident turning over Urban Candle to their niece, they decided to bring in Saint Louis Group Business Brokers in order to relinquish company ownership professionally.
“It’s very formal, and I think that’s the best way to do things,” DePalma says. “I think it’s the best way to operate with family, so you know that everything that we’re saying and we’re doing is stamped and verified.”
DePalma compares selling a business to selling a house. First the business is evaluated based on factors like customer base and growth potential. Then, a price for the company is set, and it’s listed.
Ultimately, Butz made the decision to take over the company—moving back to St. Louis at the beginning of September. She purchased the business from DePalma, making the transition both a formal acquisition and a family handoff.
“Going with a business broker allowed them to also pursue other options in case things fell through,” says Butz, noting that she waffled over the decision for months. “It provided them with a safety net and also gave me peace of mind.”
The big focus right now, according to Butz, is on refreshing the company website and finding ways to drive more in-store traffic, whether it’s with candle-making parties or local markets. She’s ready to make Urban Candle her own.
“I want to put my own flair on it,” she says.
Butz is looking forward to checking out what’s new in St. Louis—particularly the local arts scene. In the meantime, DePalma plans to continue mentoring her niece and aiding in the company’s transition and development.
“To have her take over, we know and trust her, and we’re very excited,” says DePalma. “We love her vision.”
