…and More Succession Planning Lessons
Three panelists. Three perspectives on forming and leading employee-owned companies. CEO Chris Fredericks recently participated in a panel discussion focused on forming and leading employee-owned companies and the topics were spurred by burning questions from attendees.
The conversation kicked off with a question about the circumstances that drove their companies toward employee ownership. Chris admits that employee ownership wasn’t even among TVF co-founder Dick Hanzel’s “top three or four” choices for succession at first. However, his eventual decision to go ESOP boiled down to factors including:
- Confidence in the existing leadership team to continue building on TVF’s success
- An opportunity for Hanzel to continue as a board member
- The existence of a seller note in the transaction process
- Concern over losing control to a third party (such as private equity)
- The many cashflow and tax advantages involved in being a 100% S-Corp ESOP
Dick was supportive of the approach. Chris and the rest of the leadership team were excited about transitioning to an ESOP from a culture and long-term perspective for the business.
The online panel discussion took place during the Economic Recovery and Employee Ownership Conference. Featured panelists included Fredericks, Adam Rupp of Midwest Mole in Greenfield, Indiana, and Ole Olson of Isthmus Engineering & Mfg. in Madison, Wisconsin. The event was hosted by the Indiana Cooperative Development Center and the Indiana Center for Employee Ownership. Dr. Richard Van Doel, president and CEO of INCEO served as panel discussion moderator.
You can view the conference’s agenda here and watch the panel discussion here.
The panel featured Empowered Ventures President and CEO Chris Fredricks, Adam Rupp of Midwest Mole in Greenfield, Indiana, and Ole Olson of Isthmus Engineering & Mfg. in Madison, Wisconsin.
