Echoes

    Doug Stearley followed the traditional employment path upon his graduation from Rose- Hulman, accepting a job offer from the Procter and Gamble Company in 1979, before a right turn sent his career whirling in another direction.
    “I originally felt that I would be at Procter and Gamble for my whole career. Then, I started looking around and knew that I wanted a smaller business,” said Stearley.
    Fifteen years later, Stearley has built a $20 million business through a ground-up investment group concept, relying on the skills formed at Rose-Hulman as the base of his real-world education.
    The ascent began when Stearley applied to several of the nation’s elite business schools, accepting an offer to pursue an master of business administration degree from Stanford University. After a year of background training, Stearley enrolled in a class called “The Formation of New Ventures” that would change his life forever.
    The class introduced Stearley to the search-find concept, which involves seeking out investors to fund a company in the short-run. These investors fund the purchase of an existing business (a process called venture capitalism), while the company leader builds his own base of capital.
    “Formation of New Ventures showed me ways to own my own business. I didn’t have money or experience, just an idea to make it happen. I had to sell this new concept and myself to potential investors,” said Stearley.
    Before embarking on the search-find concept, Stearley explored a field beyond the traditional route to see if he could be successful. He turned down several job offers for the summer prior to his graduation before accepting a position as Operations Analyst at Sun Microsystems, Inc. in Mountain View, California.
Stearley built pro forma financial statements which documented over $40 million in savings during his stint at Sun Micro. He designed distribution channels through a business plan for a division that remanufactured used workstations.
    “Sun Microsystems was an up and coming corporation. I learned a new way of looking at things that summer,” said Stearley.
    Stearley completed his work at Stanford University in 1991, earning an MBA with an emphasis on operations and small business management. He then founded and served as President of “The Stearley Group, Inc.,” in hopes of forming an investment group and searching for a small business to acquire and manage.
Stearley first needed to sell the search-find concept to potential investors, who would fund the process necessary for acquisitions. The equity capital supplied by these investors led to the purchase of a Minneapolis based distribution company called Industrial Custom Products, which fabricates plastics and other materials for the original equipment manufacturer market.
    “The purchase of ICP was the successful completion of The Stearley Group. My partners and I continued to grow through acquisitions that have grown the business from an initial $8 million to the current $20 million in four years,” said Stearley.
    The other acquisitions included a production plant in Elkhart and an accessory division for snowmobiles in Auburn, N.Y. Stearley’s goal is to build a $100 million industrial manufacturing business by expanding the customer base and acquire companies in the Southeast or Northwest in the custom, thermoforming industry.
Stearley admits that his Rose-Hulman education and overall background have been a reason for his success.
    “The rigorous situation of Rose-Hulman is the backbone and basis that enables me to be successful in finance. The technical background has been a great help and my contacts have improved in the Midwest because of Rose-Hulman’s alumni. The support of individuals like Ron Reeves, Tom Mason and Jim Eifert make the school unique to me,” said Stearley.
    Stearley offered his advice for achieving success to upcoming Rose-Hulman graduates.
    “Coming out of Rose-Hulman, you have the skills to do anything that you want. Do not place limits on yourself about what you can or will do. Being successful at     Rose requires a passion that will live with you for 20-30 years,” said Stearley.
    Stearley enjoys flying, golf and bicycling while staying involved in church related activities. Most of all, he enjoys the company of fiance Kris Finholt, whom he married in October.
    “It’s important to give back to the community through service organizations. The busier you are, the more you get accomplished,” said Stearley.
— by Kevin Lanke