Succession plan

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Greenfield Company Goes Employee-Owned

A Greenfield-based specialty underground contractor has switched its ownership status. Midwest Mole Inc. says it has transitioned to an Employee Stock Ownership Plan following the retirement of second-generation owner and Chief Executive Officer Dan Liotti. The company, which provides boring, trenchless tunneling, and directional drilling services throughout the Midwest, has been family owned since its

The benefits of transitioning your business to an ESOP

When an owner of a privately held business is planning to retire, there are many ownership transition options to choose from. You can go the route of a management buyout, transfer to the next generation, a sale to a third-party buyer, an IPO, or even liquidation. Each of these options has pros and cons which

With an ESOP, many winners in sale of a business

Former owner Jim Dow, who retired as CEO at 81, said he did the right thing in selling Diversified Plastics to its 80 employees. For many business owners, a succession plan is about more than creating an exit strategy or profiting from the sale of the company. It’s about preserving a legacy in a way

PAQ Inc. Turns to ESOP for Food 4 Less Stores

PAQ Inc., an independent franchisee of Food 4 Less operating 20 stores in central and northern California, has created an employee-owned stock ownership plan (ESOP) in light of the retirement of owners Patricia and John Quinn. Business partner Glenn Evans will remain with the company as chairman of the board. The three partners founded the business in

How employee stock ownership becomes a succession plan

As succession strategies go, the employee stock ownership plan might be the ultimate twofer. For Joe Reeves and Ron Butt, co-founders of Louisville, Kent.-based ARGI, the pursuit of a viable succession plan for their $2.6 billion financial planning firm was the original objective, but the ESOP provided the added bonus of giving all employees a potential stake in the RIA's

Consider An ESOP As Your First, Not Last, Resort

Despite appealing reasons for business owners to establish an employee stock option plan, or ESOP, an enormous knowledge gap exists that prevents many owners from even considering one.  Many view an ESOP as the last resort when contemplating an eventual retirement or succession plan, believing it too complicated. If that’s your view, let me address

Employee Stock Plan Could Brew Up Productivity For Great Lakes

There’s a tradition at Cleveland’s Great Lakes Brewing Company. Each day around 4 o’clock, employees gather in the brewpub for a complimentary “shift beer.” It’s a chance to celebrate the fruits of their labor. Soon though, the employees at the 30-year-old company will be getting a new perk, probably worth a lot more than a

Retiring Entrepreneurs Are Selling the Business to Their Employees

Baby boomers own about half of all privately-held companies with employees in the United States. The 2.4 million business owners who belong to this aging demographic (one-third of whom have already passed 65) will need to develop sound and sensible exit strategies. As they look to the future, there is an elegant solution that all

USA Mortgage transfers ownership of company to employees, forms ESOP

USA Mortgage's sole owner, president and CEO, Douglas Schukar, transferred ownership of the company to employees through an Employee Stock Ownership Plan (ESOP). Schukar said he'd been mulling the idea of an ESOP since 2015, when a pair of employees abruptly resigned citing a lack of a succession plan at the company.  "I was stunned,"

Sharing the wealth: The push for workers to buy the companies that employ them

Carolyn Berke knows the challenges of owning a food business in the Bay Area. As the owner of Union City-based Niles Pie Company for several years — and having owned and worked in bakeries on the East Coast — she’s experienced some of the industry’s long-standing challenges: a struggle to find and keep employees in

Closely Held Businesses: You Make the Plan, or a Plan Will Be Made For You

Who is the Better Planner for Your Affairs: You or the State? Planning for succession of a closely held business is a lot like making a will. An individual has the opportunity to make a will which directs how the individual's final affairs will be handled and property distributed.  If an individual fails to make

How ‘Fluffy’ the secretary became an owner of a $54 million Philly company

Sometimes a succession plan involves champagne and bruschetta at Del Frisco’s swanky steak house in Center City. And sometimes it involves throwing a chair against the wall. William A. Graham 4th, 76, chairman of the Graham Co., has had it both ways in a three-generation, father-and-son saga that’s about love and rivalry and the need for each