Family Business Archives

Beyond the Short-Term: the Effects of Broad-Based Employee Ownership on Labor Productivity in Family and Nonfamily Firms

Frank Mullins | August, 2022

Purpose This study investigates whether broad-based employee ownership (BBEO), in isolation and in conjunction with cash profit sharing (CPS), can enhance labor productivity in family firms over nonfamily firms. Design/methodology/approach Hypothesis testing was conducted using cross-sectional time-series regression with a matched sample of 393 family and nonfamily firms listed on the US S&P 500 over … Read More

PDS: Ring-Fencing the Ranch

Dennis Campbell, Kerry Herman, Tarun Khanna | September, 2020

Pallak Seth, Group CEO of PDS Multinational Fashions, is contemplating options to bring better collaboration across his global apparel supply chain platform. PDS, a group of 50-plus subsidiary companies, each led by its own CEO and with different apparel industry specialties, has grown rapidly over the past decade, yet the industry is increasingly competitive and … Read More

Understanding the Opportunities for Employee Ownership Among Minority Veteran-Owned Businesses

Kyra Sutton, Oyindamola Daramola, William Castellano | December, 2021

The United States business sector is dominated by small businesses that create new jobs at a rate considered faster than that of their larger competitors. Remarkably, military veterans own nearly 13 percent of small businesses. However, only eight percent of all veteran-owned firms are minority owned. The low percentage of minority-owned veteran businesses is perplexing … Read More

Using an Employee Stock Ownership Plan (ESOP) for Business Continuity in a Closely Held Company

The National Center for Employee Ownership | September, 2018

Congress designed ESOPs to be the most cost-effective means for both owners and companies to provide for business transition. One of the most difficult problems for owners of closely-held businesses is finding a way to turn their equity in a business into cash for retirement or other purposes. The decision to sell is more than … Read More

Company Profile: S&C Electric Company

Adria Scharf | November, 2021

This mini-case study examines S&C Electric Company, the storied Chicago-based employee-owned company that was founded in 1911. The mini-case study introduces the company’s history and describes how employee ownership preserved the company and its jobs during a key generational transition.

Company Profile: Max Auto Supply

Adria Scharf | November, 2021

At Max Auto Supply Co., a Toledo-based chain of 113 automotive repair stores, CEO Randy Katz’s main motivation for adopting an ESOP was “to cash out family owners and avoid estate tax.” It also “felt like the right thing to do” for the company’s employees, most of whom are mechanics and technicians.

Mini-Case Study: National Van Lines

Adria Scharf | November, 2021

This mini-case study examines employee share ownership at National Van Lines, where an Employee Stock Ownership Plan (ESOP) provided a family-run business a succession plan that ensured the continuation of the company and protected employee jobs. Just one-third of family businesses successfully transition from the first to the second generation of ownership and only 12% … Read More

Case Study: North State Grocery

Adria Scharf | October, 2021

This case study examines employee share ownership at North State Grocery, where the Employee Stock Ownership Plan (ESOP) solved a transition challenge in a company owned by two siblings. Thanks to the ESOP, long-term employees, including frontline staff such as cashiers and bakery workers, build a larger cushion of retirement savings than is typical in … Read More

How to Choose an Employee Stock Plan for a Closely Held Company

The National Center for Employee Ownership | September, 2020

Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan. Others say they’d like to have an employee ownership plan, but they’re not sure what … Read More

How an Employee Stock Ownership Plan (ESOP) Works

The National Center for Employee Ownership | August, 2020

This short web article introduces how an ESOP works, rules, and tax advantages.

National Van Lines, Inc.

Mary Josephs | January, 2020

How National Van Lines retained its culture and success through employee ownership, guided by the ESOP advisory services of Verit Advisors.

As National Van Lines’ ESOP CEO Maureen Beal Nears Retirement, She Sits for an Interview with Mary Josephs

Mary Josephs | December, 2019

For nearly a decade, I have had the pleasure of knowing and working with Maureen Beal, the third-generation owner and chairman and CEO of National Van Lines, the national company whose brand is synonymous with “moving.” Maureen, who began as a teen switchboard operator at the company and then in 1993 took the helm after … Read More

A Piece of the Pie? The Effects of Familial Control Enhancements on the Use of Broad‐Based Employee Ownership Programs in Family Firms

Frank Mullins | September, 2018

While family firms tend to be highly committed to their employees, scholars contend that founding family owners are likely hesitant when it comes to sharing ownership broadly with non-family employees. Taking a heterogeneous view of family firms, this study investigates the implications of different familial control‐enhancing mechanisms on the use of broad‐based employee ownership programs … Read More

Is an ESOP Right for Your Remodeling Business?

PowerTips Unscripted | March, 2018

In this podcast Anthony Mathews discusses succession planning, exploring questions including: What type of company sets up an ESOP? What is the process of establishing an ESOP? What are some of the challenges companies face? What makes an ESOP different than a 401k or other plan? What are the tax advantages? How does having many … Read More

The Better Exit Strategy: ESOPs Satisfy Business Owners And Preserve Their Legacy

Mary Josephs | February, 2014

On Chicago’s North Side, decades after other manufacturing companies went bust, migrated to the South or outsourced everything to China, S&C Electric – a $700 million-a-year maker of equipment for utilities – stood independent, profitable and debt free. Then, its controlling stockholder, John C. Conrad, died at age 89, and like so many family companies … Read More

Using an ESOP to Liquidate a Portion of the Value of a Family Business

Martin Staubus | March, 2010

Technically, an ESOP is a retirement plan and serves the purpose of accumulating retirement savings for the company’s employees. In practice, however, they can act as a cash buyer of private company stock, thus creating a source of liquidity for the company’s owners.

Client Profile: Coast Citrus Distributors

Ron Zollars | January, 2010

At Coast Citrus, the employees are eligible to participate in the ESOP after completing 500 hours and/or three months of service. Currently the company is 70 percent employee owned.

Ottawa Devices, Inc. (B)

Harry C. Midgley, Henry B. Reiling | November, 2004

The Rollins family assembly was meeting to choose between several business strategies, including an employee stock ownership plan.

Davey Tree Stands Tall with Employee Ownership

Karen Thomas | June, 2004

Over 25 years, The Davey Tree Expert Company’s employee owners built a good small company into one of the premier companies in its industry, with an entrepreneurial zest for new products and acquisitions. The company’s development would have pleased its inventive founder and provably surprised the family members who sold it to hesitant employees in 1979.

An Assessment of Employee Ownership in the United States With Implications for the EU

Douglas Kruse, James Sesil, Joseph Blasi, Maya Kroumova | September, 2003

There is a significant gap in the incidence and development of employee ownership between the European Union (EU) and the US when both sectors are examined.

Getting Your Company Ready for an ESOP: The Ownership Culture Perspective

Alexander P. Moss, Virginia J. Vanderslice | January, 2000

This chapter describes how ESOP companies can align expectations and build a culture of ownership; reprinted from “Selling to an ESOP, Sixth Edition.”

Corbin Motors

John A. Davis | July, 1999

Explores the raising of capital to finance the growth of a spinoff business from Corbin-Pacific, a leader in motorcycle accessories.

Practice Note: Questions and Answers Regarding ESOPs for Family Businesses

James Willis, John Hoffmire, Ronald J. Gilbert | January, 1992

Assessing the applicability of employee stock ownership plans for a family firm requires a basic understanding of their characteristics, followed by a careful analysis of the costs and benefits in the specific case. This note provides general information and offers guides for the critical, specific questions an adviser or owner should ask.

Subject

Family Business