One Eleven

In 2009, One Eleven opened in the historic district of Greensburg, Pennsylvania, providing a unique and spirited eatery. The restaurant featured “progressive food, exquisite cocktails, exotic music, lush atmosphere, and a lively bar.” The establishment was owned by Richard Kurtz, a celebrated local restaurant personality, and a partner. Despite critical acclaim for the restaurant, the partnership itself was unsuccessful. As a possible solution, the partner offered Richard her share of the business for an amount based on a valuation performed by an associate of hers.

Richard approached The Progress Fund, a certified CDFI that targets businesses in the tourism industry, including restaurants, an industry often avoided by traditional lenders. Kurtz asked the Progress Fund to lend him money to purchase his partner’s share, perform some needed renovations, and provide adequate working capital. The Progress Fund referred Kurtz to the Saint Vincent College Small Business Development Center (SBDC) for assistance in determining the value of the business and developing financial projections to support his loan request.

During the initial meeting, the SBDC consultant reviewed the valuation provided by Kurtz’s partner and discussed the methodology of business valuation. The SBDC consultant then explained to Kurtz how the financial projections will both serve as a budget for his future operations and as a means to demonstrate to the lender that the business will be able to support the new debt service. They also discussed the impact that the new debt service would have on the business.

Subsequently, work began on Kurtz’s project. The SBDC consultant reviewed the partner’s valuation and provided Kurtz with an alternative value of the business based on the valuation methods Adjusted Book Value, Gross Revenue Multiplier, and Capitalized Adjusted Earnings. The consultant's assistance in understanding the valuation enabled Kurtz to negotiate a selling price much lower than what the partner first suggested. Once the partners agreed on the price, financial projections were developed based on the restaurant's historical records.

Kurtz was able to secure a loan from the Progress Fund and reopen the One Eleven in December 2012. Kurtz was also provided restaurant industry benchmarks for food, alcohol, and labor costs, an analysis of his operation, and consulting assistance for determining, managing, and controlling those costs. 

Kurtz has been very generous with praise of the assistance provided by the SBDC, and has expressed his feelings through support letters that he submitted to area legislators.

Kurtz continues to benefit directly from the assistance provided by the Saint Vincent College SBDC.