New England Architectural Design and Construction Firm Values Employee Dedication, Establishes Minority ESOP

Overview

Founded in 1996, Carpenter & MacNeille Architects & Builders, Inc. (C&M) has become an award-winning architectural design and construction firm serving the New England region. Combining an appreciation for historical precedent and thoughtful innovation, the firm delivers architecture planning, interior design, custom millwork, construction and property services capabilities to a range of homes that are built to stand as legacies. The firm’s careful attention to incorporating the highest standards for design, construction and property maintenance has created its stellar reputation. C&M leaders have distinguished their service through the creativity, passion and client-focused dedication of the professionals that drove their firm’s success across three decades.

Situation

Determined to reward the commitment of their employees through business ownership, C&M recognized the need for a transformative succession strategy. Owners prioritized preserving the firm’s culture, establishing employee retention benefits, creating liquidity for shareholders and supporting the long-term growth for the business and its professionals. A comprehensive evaluation of business transition strategies revealed that the adoption of a minority employee stock ownership plan (ESOP) would best achieve these goals and position employees for sustained success in years to come.

Solution

C&M engaged SES ESOP Strategies along with its affiliated law firm, Stevens & Lee, to structure the minority ESOP plan and guide the firm through the transaction process. SES led the feasibility study, financial due diligence and the modelling of the ESOP transaction, including a capital raise and negotiation of transaction terms. Across this process, attorneys from Stevens & Lee helped to prepare the ESOP transaction and related documents.

“We wanted to ensure that the high-quality dedication and passion of our professionals are rewarded as our business evolves,” said Robert MacNeille, President and Design Principal of Carpenter & MacNeille Architects and Builders, Inc. “SES and Stevens & Lee delivered the thoughtful client service we value, guiding the financing and technical details of the transaction and positioning our employees to benefit from the future success of the company.”

For more information on this transaction, please contact Rick Weed, Sr. Vice President, at 617.603.8965, Paul Fusco at 215.508.5642, Ken Wanko, Managing Director, at 215.285.7190, Vince Capone, Sr. Vice President, at 215.508.7716, or Nathan Stoner, Sr. Financial Analyst, at 484.651.1081.