Covenant Eyes Completes Sale to Employee Stock Ownership Plan (ESOP)

The 211 people who work at Covenant Eyes now own the business through a financial vehicle called an Employee Stock Ownership Plan (ESOP).

As of December 31, 2020, Covenant Eyes Inc. belongs to its 211 employees. President, CEO, and co-founder Ron DeHaas previously held the majority interest in the company, along with a few other investors close to the company. The transfer means employees directly benefit from the growth of the company overall and own a stake in the company.

“I can’t think of anyone better to sell the company to than those who work to make it the best service every day,” said DeHaas. “They are the ones who are committed most to continuing the Covenant Eyes mission, and they are the ones who will ultimately benefit from its growth in the future.” DeHaas plans to stay as the president and CEO of Covenant Eyes. Company executives will also continue to make high-level decisions for the company.

Employees learned about adding “owner” to their titles at an online company meeting January 14, 2021. “I’m thrilled that the company I work for cares so much about me and my future to provide me this additional benefit,” said Rhonda Robinson, a human resources assistant who has worked at Covenant Eyes for more than four years. “This is one more reason why I love Covenant Eyes, and now I own part of this very important work and will benefit from its future growth.”

 Ron’s decision to sell the company comes 20 years after starting it. He wanted to ensure that Covenant Eyes would always be true to its commitment and wouldn’t be sold to other interests that could have taken it in another direction.

According to The Employee Ownership Foundation’s 24th Annual ESOP Economic Performance Survey, most ESOP companies showed increases in productivity, revenue, stock value, and profitability, all of which benefit employees. If there is a separation between the company and employee, the employee is compensated their share of the company’s fair market value.

“It is exciting to see such a big increase in the number of employee-owners in the United States as well as the wealth creation associated with Employee Stock Ownership Plans. According to the National Center for Employee Ownership (NCEO), there are now 14 million ESOP participants with ESOP balances of $1.4 billion,” added Aaron Juckett, president, and founder of ESOP Partners, the firm that led the transition.

In Michigan, there are 172 privately held ESOP companies and only a handful that are 100% employee owned. These employee-owned companies employ approximately 31,000 employee-owners.

“Covenant Eyes employees have always ‘bought in’ to how accountability helps with those who want to stop looking at pornography. Now, they’re literally bought in as owners and share in all of the financial benefits of a growing company,” said DeHaas.

Covenant Eyes employees pay nothing to be owners of the company. The company pays for their ownership through profits being reinvested. There is a vesting-time requirement for new employees to become co-owners.

About Covenant Eyes

Pornography is corrupting hundreds of millions of people. Covenant Eyes exists to change the course of history by enabling the world to overcome porn and be restored and transformed.

About ESOP Partners

ESOP Partners is an ESOP service provider that 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 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 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), there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees. There are less than 2,500 ESOP companies that are 100% owned by their employees. 

Read the press release here. 

Drake Cooper Completes Sale to Employee Stock Ownership Plan (ESOP)

Drake Cooper has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP). On December 1, CEO Jamie Cooper transferred 100% ownership of the company to its employees retroactively, creating a full year of stock accumulation for 2020.

An ESOP — 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 — provided the ability to slowly transition leadership of the company over time, and reward the team who helped the company be successful.

 About Drake Cooper 

Drake Cooper, founded in 1978 by Bill Drake, is one of Idaho’s oldest advertising agencies. It is a full-service, and independently owned advertising agency with offices in Boise, Idaho, and Seattle, Washington.  In a first for Idaho creative agencies and one of only a few in the Northwest, Drake Cooper is now an ESOP company.

"We’ve always believed our people are the key to our clients’ success and therefore to our agency’s success and longevity. This new chapter is an extension of who this agency has always been and the values we’ve always tried to uphold. I am very excited for our new employee-owners and this journey we will all take together,” Cooper states.  

About ESOP Partners

ESOP Partners is an ESOP consulting and administration firm in Appleton, WI, assisted with the sale and will continue to work with the company as the ESOP consultant and third-party administrator. 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 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 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) there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees. There are less than 2,500 ESOP companies that are 100% owned by their employees.

Read their full press release here. 

Read a special story about Drake Cooper's announcement, "Christmas in Boise: Boise Ad Agency Employees Become Owners," published by Nonprofit Quarterly Magazine.  

Neu Tool & Supply Corp., Inc Completes Sale to Employee Stock Ownership Plan (ESOP)

Neu Tool & Supply Corp., Inc. has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP). 

An ESOP — 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 — provided the ability to slowly transition leadership of the company over time, and reward the team who helped the company be successful.

 About Neu Tool & Supply Corp., Inc. 

Neu Tool & Supply Corp., Inc. was founded in 1964 and is located in New Berlin, WI, a suburb of Milwaukee. They are a full line warehouse distributor with clients ranging from mobile and industrial tool distributors to parts and paint stores across the nation. They are a premier source for tools, equipment and auto body supplies.

About ESOP Partners

ESOP Partners is an ESOP consulting and administration firm in Appleton, WI, assisted with the sale and will continue to work with the company as the ESOP consultant and third-party administrator. 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 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 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) there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees. There are less than 2,500 ESOP companies that are 100% owned by their employees.

Quadrant Holding Co., Inc Completes Sale to Employee Stock Ownership Plan (ESOP)

Quadrant Holding Co., Inc. dba AKC Marketing, REL Productions and Dwebware has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP). 

An ESOP — 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 — provided the ability to slowly transition leadership of the company over time, and reward the team who helped the company be successful.

 About Quadrant Holding Co., Inc.

Quadrant Holding Co., Inc., dba AKC Marketing (full service marketing/advertising agency), REL Productions (full service video production) and Dwebware (full service software development).

About ESOP Partners

ESOP Partners is an ESOP consulting and administration firm in Appleton, WI, assisted with the sale and will continue to work with the company as the ESOP consultant and third-party administrator. 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.

 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 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) there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees. There are less than 2,500 ESOP companies that are 100% owned by their employees.

Bergen Plumbing, Heating & Cooling, Inc. Completes Sale To Employee Stock Ownership Plan (ESOP)

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. 

Digital Dynamics, Inc. Completes Sale to Employee Stock Ownership Plan

Digital Dynamics, Inc. (DDI) has proudly announced the successful transfer of 100% of the company’s shares to an Employee Stock Ownership Plan (ESOP).

Standard Golf Company Completes Sale to Employee Stock Ownership Plan

standardgolflogo.jpgStandard Golf Company has announced the successful transfer of a 100 percent ownership of the company to its employees via an Employee Stock Ownership Plan effective Jan. 3, 2018.

Poblocki Paving Corporation Completes Sale to Employee Stock Ownership Plan (ESOP)

Poblocki Paving Corporation, a single source asphalt paving and snow removal contractor, has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).

When Poblocki Paving owner, John Poblocki, started thinking about succession plans for the business, they had many options and selling the company to an unknown party or to a large corporation weren't attractive to them because they wanted to keep the current management team intact along with maintaining the culture of the company.

DACO Precision Tool Inc. Completes Sale To Employee Stock Ownership Plan (ESOP)

ESOP Partners, an Employee Stock Ownership Plan (ESOP) consulting and administration firm, has announced the successful completion of the sale of DACO Precision Tool 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.  DACO and Randy Weber and Lloyd Kanzenbach finalized the sale in May 2017.

Fox Brothers Piggly Wiggly Completes Sale to an Employee Stock Ownership Plan (ESOP)

ESOP Partners, an Employee Stock Ownership Plan (ESOP) consulting and administration firm, has announced the successful completion of the sale of Fox Brothers Piggly Wiggly, Inc. to its employees via an ESOP.