A good sign for brighter days

Sarasota entrepreneur Hidayet Kutat, owner of what was once a $3.5 million sign company, is finally talking optimistically about his company's future prospects — after months of anxiety.

“By no means has it been a good year,” says Kutat, a native of Turkey. “But we've had to do whatever we have to do to survive.”

The latest survival move from Kutat, president and CEO of Gulf Coast Signs of Sarasota, is an acquisition. The company bought Fort Myers-based Images Graphics Specialties. Terms of the deal, announced Sept. 16, weren't disclosed, but Kutat says it will double his company's nationwide market capitalization.

The purchase will also allow Gulf Coast Signs to get more involved in making signs that help businesses comply with the Americans with Disabilities Act, which was a niche for Images Graphics, Kutat tells Coffee Talk. “They are very strong in that and can catapult us into the big leagues,” Kutat says.

Moreover, Images Graphics, founded by John Hose in 1988, has a strong presence with small business clients in Fort Myers and Naples. Kutat says those customers, especially the ones with active bigger jobs, will go a long way toward solving one of the biggest current challenges at Gulf Coast Signs: Cash flow.

The issue there, says Kutat, is a few companies that were once large Gulf Coast Signs clients filed for bankruptcy. “That took its toll on my cash situation,” he says.

Meanwhile, Hose, who confronted his own recession challenges at Images Graphics, has stayed on with the company as executive vice president of sales and marketing. Two other Images Graphics employees will also stay with Gulf Coast Signs after the merger. Kutat, however, says he will eventually close the Fort Myers office and consolidate everything in Sarasota.

Kutat is hopeful the merger with Images Graphics will be a big step in leading Gulf Coast Signs toward a return to growth. Revenues for the company, with a client list that includes strip malls, department stores and banks, are down at least 30% over the past two years.

And at the minimum, the acquisition reunites Kutat with Hose.

The pair have been friendly competitors since they met seven years ago. “We have never been at each other's throats,” says Kutat. “We are good friends.”