Overview
Founded in 1993 in Grove, Oklahoma, Precision Communications (Precision or the Company) is a national provider of maintenance, engineering and construction services for the broadcast industry. From emergency transmission support and timely inspections to new tower construction and asset management, Precision brings a depth of capabilities for tower owners and tenants. Its leadership is team-driven and believes that the dedication and technical experience of its engineering and field professionals have fueled the Company’s growth and success.
Situation
In 2020, Precision was acquired by PromiseONE, a holding company dedicated to giving aspiring entrepreneurs the opportunity to become business owners. PromiseONE uses an entrepreneurship through acquisition (ETA) model that differs from traditional private equity because it does not rely on outside capital seeking a quick return. Instead, PromiseONE empowers its operating entrepreneurs to become autonomous owners and build strong cultures focused on long-term value creation.
Precision’s CEO, Sean Wenger, was one of the aspiring entrepreneurs who became a business owner through PromiseONE’s ETA program. After experiencing the benefits of ownership, he wanted to extend those benefits with Precision’s employees. As a result, Sean and the PromiseONE team pursued a transition plan that prioritized preserving the Company’s team-oriented legacy and supporting the long-term growth for the business and its employees, rather than maximizing investment returns. After thorough analyses of transition strategies, a 100% employee stock ownership plan (ESOP) proved to be the best fit for the Company’s business and culture goals.
Solution
Precision engaged SES ESOP Strategies along with its affiliated law firm, Stevens & Lee, to structure the new ESOP plan and guide the Company through the transaction process. SES conducted financial due diligence and modelled the proposed ESOP plan. Attorneys from Stevens & Lee helped to prepare the ESOP transaction, related documents and worked to ensure that a Stock Appreciation Rights Plan would reward future company leaders.
“Maintaining our team-centric values and rewarding our dedicated professionals through ESOP ownership were the top priorities for me and the legacy of the business,” said Sean Wenger, CEO of Precisions Communications. “SES and Stevens & Lee helped us navigate the technical and transactional details of this important transition and established the path for our employees to invest in the future of what has become their business.”
For more information on this transaction, please contact Sean-Tamba Matthew at 215.508.7705, Vince Capone, Sr. Vice President, at 215.508.7716, Kyle Priebe at 215.508.5637 or Nate Stoner at 484.651.1081.