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Elipticon Wood Products, Inc., Completes Sale To Employee Stock Ownership Plan (ESOP)
Appleton-based ESOP Partners aids sale of local manufacturing company to its employees.
APPLETON, WI (PRWEB) SEPTEMBER 30, 2015
ESOP Partners, an Employee Stock Ownership Plan (ESOP) consulting and administration firm, has announced the successful completion of a sale of Elipticon Wood Products, Inc. to its employees via an ESOP.
An ESOP is a qualified retirement plan that buys, holds, and sells company stock for the benefit of the employees, providing them with an ownership stake in the company. John Wiley, Owner of Elipticon Wood Products, Inc., finalized the sale in August 2015, along with Doug Gilbert, President and CEO.
“Providing an ownership opportunity to those dedicated employees who helped a business grow and prosper is one of the most positive forms of transition a successful entrepreneur can choose,” said Doug Gilbert, President and CEO of Elipticon Wood Products, Inc. “With all of the positive aspects of an ESOP, there is also much to learn. Working with an expert in the field can mean the difference between a successful transition and a very negative outcome. ESOP Partners provided the expertise, education for our employees, access to other professionals, and ongoing guidance that will ensure that we are a successful ESOP for years to come.”
“John was looking for a way to sell the business that would recognize and reward Elipticon employees for their hard work and dedication throughout the years. Selling to an ESOP was a great fit for meeting these objectives and to help keep Elipticon as a fixture in the Little Chute community,” said Aaron Juckett, President of ESOP Partners. “The fact that selling to an ESOP in a 100% ESOP transaction was the most cash efficient and tax efficient solution for both John and the company helped solidify the decision that selling to an ESOP was the ideal business transition path.”
ESOP Partners will continue to work with Elipticon Wood Products, Inc. as the company’s ESOP consultant and third-party administrator.
About Elipticon Wood Products, Inc.
Based in Little Chute, Wisconsin, Elipticon Wood Products, Inc. is a quality, dealer-networked manufacturer of custom straight and curved millwork distributed throughout the Midwest. The company’s moldings and casings enhance the value and natural beauty of its end customers’ homes and businesses. With tooling for more than 4,500 millwork profiles, Elipticon Wood Products, Inc. provides beautiful architectural millwork that matches the wood species and profiles of homes and businesses. It accomplishes this by combining the use of state-of-the-art technologies, machinery, and custom craftsmanship.
About ESOP Partners
ESOP Partners is an ESOP consulting and administration firm that provides a single ESOP expert as a point of contact throughout the life cycle of the ESOP. The company works with business owners and companies considering an ESOP to provide ESOP feasibility, plan design, and full ESOP implementation services. ESOP Partners also provides support for ongoing ESOP companies, including ESOP TPA services, distribution and repurchase obligation planning, and consulting services covering corporate governance, ESOP culture, employee communications, and second stage transactions.
Employee Stock Ownership Plans (ESOPs) are qualified retirement plans that buy, hold, and sell company stock for the benefit of the employees, providing an ownership stake in the company. ESOPs are the only retirement plan allowed to borrow money to purchase stock and are generally funded only by the company. Selling part or all of a business to an ESOP enables a business owner to sell to a built-in buyer in as little as 60-90 days at full fair market value. There are many significant tax and cash flow benefits of selling to an ESOP. An ESOP also allows for a better-managed ownership transition, preservation of local jobs, and the maintenance of a company’s legacy in the community. According to the ESOP Association there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees (10 percent of the private sector workforce).