Overview
MCI Mechanical Contractors LLC was founded in 1948 and has grown into one of North Carolina’s award-winning design build contractors for construction, engineering, project management, HVAC services, building automation services and energy services solutions. The company believes that peak client service derives from talented and highly skilled professionals. Leadership attributes business success to the passion and innovation of their professionals, and actively fosters an employee-first culture.
Situation
MCI leadership sought a business transition plan that would reward the commitment of its employees through company ownership, further the core values of their employee-centric culture and sustain long-term business growth as an independent company. An employee stock ownership plan (ESOP) emerged as the right fit.
Solution
MCI engaged SES ESOP Strategies and affiliated law firm, Stevens & Lee, to assist in structuring and forming a new ESOP for the purchase of 100% of the company. SES gathered key financial due diligence, negotiated financing terms and collaborated closely with the client’s banking, insurance and company advisors to help manage the successful transition. Lawyers from Stevens & Lee assisted with a reorganization of the company into a corporation, prepared the ESOP plan and all transaction documents and advised on the ESOP transaction. Notably, the company maintained its S Corporation status, allowing MCI to continue benefitting from key federal and state income tax exemptions.
“Our employees are our biggest strength, and an ESOP was a great way to reward their dedication and loyalty while retaining the Company’s independence,” said Bill Champion, President of MCI. “SES and Stevens & Lee cleared complex hurdles with efficiency and provided the kind of quality service we hold in high regard. We were happy to have their valuable assistance through this evolution of our business.”
For more information on this transaction, please contact Ed Renenger, President and CEO, at 610.478.2238, or Michael Golden, Senior Vice President, at 215.508.7715.