ESOP Partners, an Employee Stock Ownership Plan (ESOP) consulting and administration firm, has announced the successful completion of the sale of Bergen Plumbing, Heating & Cooling 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. Bergen Plumbing, Heating & Cooling has transferred 100% ownership of the company to its employees via an employee stock ownership plan.
An ESOP buys, holds and sells company stock, providing employees with an ownership stake in the company as well as an additional form of compensation linked to the success of the company.
“Our employees have been highly effective in building a strong business and outstanding reputation in the community we serve. I’ve always wanted our employees to be more than just employees and have the ability to share in the success of the company,” said Gardner, owner and president. “This ESOP provides employees with a stake in the company’s long-term success and further enhances its growth potential.”
Matthew Gardner, owner and president of Bergen, finalized the sale this month. ESOP Partners will continue to work with Bergen as the company’s ESOP consultant and third-party administrator.
About Bergen Plumbing, Heating & Cooling
Bergen Plumbing, Heating & Cooling has been providing services to the Cedar Valley since 2003. It works with both residential and commercial customers on remodels, new construction and repairs. Its licensed technicians have experience in installation, maintenance and repairs of furnaces, air conditioners, boilers, water heaters, water softeners and more.
About ESOP Partners
As an ESOP company, ESOP Partners changes lives by creating wealth and sustainable employment through
employee ownership and works with business owners and companies to determine if an ESOP is a good fit for their situation. ESOP Partners establishes, maintains, and sustains employee stock ownership plans (ESOPs) throughout the lifecycle of the company to maximize the benefits of being an ESOP company and provide employees with an ownership stake in the company that they work for.
About ESOPs
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 National Center for Employee Ownership (NCEO), employees at ESOP companies have retirement accounts 2.5 times greater than the national average. Productivity improves by 4% to 5% on average in the year an ESOP is adopted. There are approximately 7,000 ESOPs in place in the U.S., covering 13.5 million employees.