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S P O N S O R S H I P
ESOP ebullience
Employee stock ownership plans are rewarding for your staff, allow for continuity, and can enhance a firm’s culture and legacy.
Editor’s note: Wintrust Commercial Banking is a sponsor of the 2018 Hot Firm + A/E Industry Awards Conference in Dallas. W intrust is excited to be making its first appearance at the Hot Firm + A/E Industry Awards Conference, hosted by Zweig Group, this year in Dallas. Our focus is to bring current ESOP finance information to the engineering profession. Our dedication to both ESOP and AEC firms creates significant advantages for the design industry, and we look forward to sharing our expertise with the conference’s attendees.
James Swabowski
Second, in most successful businesses, ownership has created a strong culture, and ownership is not ready or willing to dismantle what it’s built. In fact, with focused attention when transitioning a business to an ESOP, we most commonly see an enhancement of the legacy. Importantly, a driving factor behind maintaining the company’s values lies with the fact that most selling shareholders not only remain active in leading the business they just sold, but oftentimes maintain the same role post-transaction as they held pre-transaction. ESOP ownership allows for consistency, which does not necessarily exist in other ownership transition alternatives. strategic buyer, private equity, the management team, or an ESOP.” “When it comes to transitioning a business, a selling shareholder has finite options, including a
When it comes to transitioning a business, a selling shareholder has finite options, including a strategic buyer, private equity, the management team, or an ESOP. None of these options are created equal, so the idea of selling all or a part of your business to an ESOP may make sense for many reasons. First, because an engineering firm’s primary assets are its employees – not its equipment or facilities – the ESOP alternative is a natural fit for rewarding them. In people-driven businesses, we find that this ownership vehicle serves the surviving company, post-sale, very well through strong accountability and attention to detail in all business aspects. Further, ESOP ownership assists with both recruiting and retaining its employees. There is no other ownership transition alternative that allows for all qualified employees to benefit, without monetary contribution, to ownership of the company. When properly communicated, this benefit has a significant and positive influence on your talent.
Pat Stoltz
Matt Doucet GUEST SPEAKERS
See SWABOWSKI, STOLTZ, & DOUCET, page 12
THE ZWEIG LETTER August 20, 2018, ISSUE 1261
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