Overview
4C Holdings, Inc. (4CH) is the parent company that oversees four operating subsidiaries: 4Creeks (engineering and surveying), 4CG Construction (design-build construction), Sentinel VPS (outsourced CAD drafting) and Topograph (marketing and brand strategy). Company leadership attributes business success to its collaborative array of professionals – engineers, surveyors, construction managers, developers, designers, programmers, architects and marketers – who handle each project with passion, care and vision.
Situation
4CH, prior to its consolidation, sought a business transition plan that would combine four operating companies into a single holding company structure that included broadscale employee ownership. In particular, business leadership wanted to reward the commitment of its professionals and further incentivize their high-quality service delivery through company equity. Creating a holding company with a 100% ESOP ownership plan emerged as the natural path forward.
Solution
4CH engaged SES ESOP Strategies’ affiliated law firm Stevens & Lee to assist with establishing a holding company for its business consolidation and providing legal work for a 100% ESOP transaction that was structured and led by Chartwell Financial Advisory. The ESOP purchased all company stock and the transaction closed in October 2023. As a result of becoming a 100% ESOP-owned S Corporation, 4CH effectively retains key exemptions from corporate federal and state income taxes.
“Our business thrives from the dedication and drive of our development design professionals. We’re thrilled to reward and motivate their commitment to creating pragmatic and innovative solutions through employee ownership,” said Matt Ainley, President and CEO of 4CH. “Stevens & Lee was integral in consolidating our business structure and providing assistance across all phases of our ESOP transition.”
For more information on this transaction, please contact Ed Renenger, President and CEO, at 610.478.2238.