Overview
Since its founding in 1990 as a local, family-owned electrical subcontractor in Colorado’s Roaring Fork Valley, R&A Enterprises (“R&A Enterprises” or the “Company”) has grown to provide a full suite of residential and commercial electrical services from three locations serving Central and Western Colorado. R&A Enterprises comprises of four commonly owned entities, including R&A Enterprises of Carbondale, Inc., R&A Enterprises of Montrose, LLC, R&A Enterprises of Western Colorado, and Innovative Electronic Systems, Inc., that have handled major projects in high-end residential, commercial and energy sectors. Company leaders affirm that business success derives from their people – the service professionals and project managers who demonstrate skill, experience and dedication to client satisfaction on every worksite.
Situation
A family-led business, R&A Enterprises was determined to maintain and extend its employee-driven values and legacy through its succession strategy. Company leaders sought a business transition plan that would reward the dedication of their workforce, ensure a seamless transition of leadership with existing management plans, sustain expansion in key regional markets and provide an ownership exit strategy and liquidity event for key stakeholders. A comprehensive evaluation of various transition strategies revealed that a 100% employee stock ownership plan (ESOP) would best acknowledge the contributions of every team member and sustain business growth in years ahead.
Solution
R&A Enterprises engaged SES ESOP Strategies, along with affiliated law firm Stevens & Lee, to structure and implement the new ESOP. SES tailored the ESOP structure for the Company and attorneys from Stevens & Lee assisted with trustee selection and due diligence, prepared the ESOP transaction and related documents and led negotiations to ensure that the transaction would reward future company leaders and employees.
“Our employees have always been our greatest asset in becoming a regional leader in electrical contracting, and rewarding their dedication with employee ownership was our top priority.” Said Chris Broadhurst, President of R&A Enterprises. “SES ESOP Strategies and Stevens & Lee provided essential guidance through financing and technical details to allow our employees to directly invest in the future success of the company.”
For more information on this transaction, please contact Jim Steiker, Chairman, at 215.508.5643, Ken Wanko, Managing Director, at 215.285.7190, Sean-Tamba Matthew at 215.508.7705, Kyle Priebe, Senior Associate, at 215.508.5637 or Davis Rosato, Sr. Financial Analyst, at 215.508.7706.