Overview
Founded four decades ago and headquartered in Sudbury, MA, Advocates for Human Potential, Inc. (AHP or the Company) partners with states, communities and organizations nationwide to strengthen human services, health and behavioral health systems. The Company helps public and private sector clients achieve funding, system, operational and policy solutions through a range of evidence-informed services that include strategic consulting, technical assistance, research and evaluation, grants management, stakeholder engagement and workforce development. AHP’s leadership affirms that the client-focused advocacy and strategic skills of its consulting professionals have been key to the community impacts that continue to shape the Company’s success.
Situation
As AHP approached its 40th anniversary, the owners sought to recognize the contributions of the professionals who helped build the Company, while also honoring the employee-centric legacy established by its founder, Neal Shifman. The owners sought a business transition and growth plan that would reward and empower the dedication of employees who have driven the Company’s success while preserving the mission and values that have defined AHP since its founding.
The strategic priorities included providing employees with the benefits of business equity, sustaining growth among targeted client sectors, retaining skilled management and reinforcing the employee-focused culture that has been central to the Company’s identity for more than four decades. AHP determined that a business transition centered on a minority employee stock ownership plan (ESOP) would best achieve both the Company and employee-focused goals.
Solution
AHP engaged SES ESOP Strategies, along with affiliated law firm Stevens & Lee, to structure and implement the partial ESOP transaction. SES provided financial due diligence, modeled the proposed ESOP plan and transaction, coordinated with the trustee and other advisors, and negotiated with lenders. Attorneys from Stevens & Lee assisted in preparing the ESOP transaction documents and establishing a management incentive plan designed to provide long-term incentives for the Company’s management team.
“We believe that rewarding our dedicated professionals with company equity should be an integral part of how we do business,” said Noah Shifman, Shareholder and President/CEO of Advocates for Human Potential, Inc. “Implementing an ESOP allows us to celebrate the Company’s 40-year history while honoring the legacy my father created and providing our employees the opportunity to share in the future success they help build every day. SES and Stevens & Lee provided excellent guidance throughout the process and completed the transaction in time to mark our 40th anniversary.”
For more information about this ESOP transaction, please contact Ken Wanko, Managing Director, at 215.285.7190, Paul Fusco at 215.508.5642, Kyle Priebe, Senior Associate, at 215.508.5637 or Davis Rosato, Sr. Financial Analyst, at 215.508.7706.