The founder of a midwest based fitness chain recently completed the sale of his company to a newly-formed Employee Stock Ownership Plan. The company’s founder was motivated to reward the employees who contributed to growing the company over 25 years from a small operation with a couple of clubs to the largest fitness chain in its markets. The company operates numerous fitness clubs in major metropolitan areas.
Read MoreAdworkshop, an ESOP owned and upstate NY digital marketing and advertising agency, recently welcomed a new equity investor and President, Tim Kelleher. The addition of Tim to the senior management team will allow the founding shareholders to continue their ownership transition while maintaining their senior management roles and responsibilities. The company’s ESOP will remain a shareholder in the firm. Click here to read the company's announcement of this important event.
Read MorePariveda Solutions, a Dallas based a leading management consultancy and ESOP company, was recently awarded one of Houston's Best Places to work. Founder Bruce Ballangee attributes its success to the firm's commitment to training and career development. Click here to learn more about Pariveda and this award.
Read MoreMorgan Lewis recently relayed an IRS announcement regarding prototype ESOP plans. In IRS Revenue Procedure 2015-36, the IRS said it will allow prototype and volume submitter employee stock ownership plan (ESOP) documents. The IRS hopes that this will not only reduce its own costs in reviewing plan documents, but also reduce the costs to companies that are considering ESOPs by allowing them to avoid custom-created plan documents.
Read MoreJuly 8, 2015 (Washington, DC) – The Tax Reform Working Group on Savings & Investment of the Senate Committee on Finance released a report of their findings for reforming the tax system. Recommendations include the expansion of gain-deferral provisions of Code section 1042 for S ESOPs (employee stock ownership plans) and guaranteeing that small businesses with SBA certification do not lose their status when they become majority employee-owned companies.
Read MoreThe New York Times reported at the Moog synthesizer factory in Asheville, N.C., on Tuesday, Michael Adams, the company’s owner and chief executive, wanted to share some life-changing news with the entire staff. “I’ve sold half the company,” he told them. Anxious silence descended among the tight-knit group, many of whom feel a familial loyalty to the business, which has been likened to Willy Wonka’s factory for electronic musicians. Then Mr. Adams revealed the buyer. “I sold it to you,” he said, to a relieved wave of whoops, applause and happy tears, according to employees present.
Read MorePilot Hill Advisors recently completed an ESOP advisory project for the owner of a specialty manufacturing company that sold 100% of their business to an employee stock ownership plan (ESOP).
Read MoreSenator Ben Cardin (D-MD) recently introduced Senate Bill 1212, the "Promotion and Expansion of Private Employee Ownership Act of 2015." with the support of 13 co-sponsors including Roy Blunt (R-MO), Amy Klobuchar(D-MN), Mary Landrieu (D-LA), Pat Roberts (R-KS), Debbie Stabenow (D-MI), John Thune (R-SD), Michael Crapo (R-ID) and Sherrod Brown (D-OH).
Read MoreSummit, NJ: Pilot Hill Advisors LLC, independent ESOP investment banking and advisory firm, is pleased to announce its newest client has recently adopted and completed a partial sale of stock to its newly-formed employee stock ownership plan. The company the largest specialty flooring contractor on the East coast. The company’s president and management worked together for several months to help bring the vision of employee ownership to a reality for the company.
Read MoreApril 1, 2015 (Washington, DC) – On March 25, 2015, The ESOP Association submitted comments on comprehensive tax reform to three of the Senate Committee on Finance’s Tax Reform Working Groups: Savings & Investment, Individual Income Tax, and Business Income Tax. The Association specifically stated how employee stock ownership plans (ESOPs) are in accord with the seven principles outlined by Finance Committee Chair Orrin Hatch (R-UT) for comprehensive tax reform --- Economic Growth, Fairness, Simplicity, Permanence, Competitiveness, Promoting Savings and Investments, and Revenue Neutrality.
Read MoreSummit, NJ: Pilot Hill Advisors LLC is pleased to announce it recently assisted the senior principals of a design, implementation and financing of a partial sale of their shares to a newly-formed ESOP.
Read MoreA recent survey of over two thousand recipients of individual equity awards by Fidelity shows that stock plans are highly valued by employees and the perception of these plans has strengthened since 2011. Here is what the respondents to the 2014 Participant Research Results are saying:
Read MoreThere has been a lot of attention in the world of employee ownership plans to the 2014 Supreme Court Decision in Fifth Third Bancorp v. Dudenhoeffer. In that case, the Court ruled that "the law does not create a special presumption favoring ESOP (Employee Stock Ownership Plan) fiduciaries. Rather, the same standard of prudence applies to all ERISA fiduciaries, including ESOP fiduciaries, except that an ESOP fiduciary is under no duty to diversify the ESOP's holdings." This ruling overturns the so-called Moench rule that has been applied to plan fiduciaries for certain 401(k) plans investing in company stock and ESOPs. Moench gave a presumption of prudence to plan fiduciaries unless they knew or should have known the company was in dire financial circumstances.
Read MoreToday, the New Jersey Senate Labor Committee unanimously approved bill S945, legislation by Donald Norcross (D) that creates a gross income tax exclusion for capital gain in connection with qualified transactions in which small businesses establish ESOPs. "We want Jersey-owned businesses to stay locally owned," Senator Norcross said. The bill would allow the exclusion of state capital gains tax for businesses with 500 or fewer employees if the ESOP ends up owning at least 30% of the company's shares. The purpose of this bill is to incentivize small businesses to establish employee stock ownership plans to allow employees to share in ownership and success.
Read MoreThe principals of Pilot Hill Advisors today announced the completion the buyout of Nelson Engineering Co.. by its newly-formed employee stock ownership plan (“ESOP”). Terms of the sale were not disclosed.
Read MoreThe National Center for Employee Ownership (NCEO) recently analyzed 1,232 leveraged ESOP transactions at three large banks found 1.3% of ESOP companies in the sample defaulted on their loans in a way that imposed losses on their creditors for loans in effect between 2009 and 2013, or an annual rate of 0.2%. The defaults accounted for 1.5% of the total value of the ESOP loan portfolio for these companies during this period. The bank data were only available for defaults imposing losses; the data presented here do not include defaults that resulted in loan restructuring where the loans were ultimately repaid or were being paid on the new schedule.
Read MoreThe sole shareholder of east coast manufacturing company completed a partial sale of stock today to its newly-formed ESOP. The company's 110 employees have come to own a substantial interest in the company by virtue of this sale.
Read MoreSummit, NJ: Pilot Hill Advisors LLC announced today that the majority shareholders of Withers & Ravenel Inc. have sold their stock interests to the company's newly-formed Employee Stock Ownership Plan (ESOP). Terms of the transaction were not disclosed.
Read MoreSummit, NJ: Pilot Hill Advisors LLC announced today that the shareholders of Payzone Directional Services, Inc. have sold a portion of their stock to the company's newly-formed Employee Stock Ownership Plan (ESOP). Terms of the transaction were not disclosed. Pilot Hill Advisors LLC provided financial consulting services to the company.
Read MoreThree political economists think its time to take up former Sen. Huey Long's fight for broadening the economic wealth in the US, in part by expanding ESOPs. Read the New York Times Op-Ed piece for more information.
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