New owner plans to light up Modern Neon

A Nixa-based small business has been elevating the names of companies big and small for 41 years, but beginning next year, family-owned Modern Neon |amp| Plastics Co. LLC will be under new ownership, pending a deal expected to close this month.

Mike Scott, Modern Neon general manager, is purchasing the Nixa-based sign company at 1009 Bittersweet Court, from president Larry Lipscomb for an undisclosed amount. The deal is expected to close before Jan. 1.

The 25-year-old business, which provides design consultation, installation, fabrication and maintenance of on-premise signage, has been in the Lipscomb family since its 1962 inception, when Lipscomb's parents, Jack and Katherine, founded Modern Neon as a division of Pioneer Advertising Company.

Scott began working for Modern Neon as an apprentice sign erector, but worked his way up the ladder becoming journeyman, production coordinator and general manager, a position he has held for the last eight years.

Though the company will be under new ownership, operations will not change significantly, according to Larry Lipscomb. Lipscomb has taken a back-seat approach in recent years, allowing Scott to run the company as general manager.

|quot|You could ask me what jobs he has going on out of 50, and I couldn't name two,|quot| Lipscomb said. |quot|I just wanted to give him full management experience only he had the safety net of us being there if he had a question. He's done a marvelous job, and that's prompted us with moving forward.|quot|

Scott is anxious to take full control of the company, which has annual sales of approximately $2 million and posts signage for such companies as McDonald's, Bank of America, General Motors and Git-N-Go. Modern Neon's clients are primarily in the retail, food, banking and auto industries.

While Modern Neon is a small business employing 18 workers, the company has conducted business with more than 1,800 companies over the years.

|quot|We do a lot of regional and national accounts,|quot| Scott said, adding that the union-staffed sign company serves southern Missouri, eastern Oklahoma and Kansas, and northern Arkansas.

Lipscomb believes it is good quality and good service attracting such clients.

|quot|Mike has gone out and built it up,|quot| Lipscomb said, noting that when Bank of America bought out Boatmen's Bank, Scott secured the four-state regional sign change-out.

Burger King, Wendy's and Git-N-Go are other regional accounts Scott has added, Lipscomb said.

Scott said the company recently signed a deal to manufacture the signage for The Signature Bank, the merger of The Bank and Signature Bank, which is expected to finalize in first-quarter 2004.

Modern Neon installed a $40,000 message board for Clear Channel Communications at 1856 S. Glenstone Ave. in December. Scott said it is Modern Neon's first full-color electronic message center. It was designed by South Dakota-based Daktronics, with which Modern Neon has had a 23-year business relationship.

Clear Channel officials said the message board will be used to announce Clear Channel promotions and events, as well as provide advertising space for clients.

|quot|We're going to allow our clients to purchase a portion of that board for advertising purposes,|quot| said Cindy Snow, Clear Channel business manager. |quot|It's going to be a really cool thing.|quot|

Keeping promises

The sale originated as an agreement between Lipscomb and his father, Jack Lipscomb. The two agreed to sell Modern Neon upon sale of another family-owned company, Pioneer Advertising.

Five years ago Lamar Advertising bought Pioneer Advertising, a billboard company acquired 75 years ago by Lester E. Cox to promote the Ford tractors he was distributing.

|quot|When we sold out, dad and I made a commitment that we would sell (Modern Neon) to Mike if he wanted to buy it,|quot| Larry Lipscomb said. |quot|That time has come up and it's time to do it and live up to our promise to each other.

|quot|I feel great about leaving it in his hands,|quot| Lipscomb added. |quot|I think he'll do wonderful at it. I think it's a great opportunity for him.|quot|

Signature Bank is providing a U.S. Small Business Association-guaranteed loan for the deal, Scott said.