Mainebiz

W W W. M A I N E B I Z . B I Z 37 M A R C H 2 0 , 2 0 1 7 F O C U S W E A LT H M A N A G E M E N T / R E T I R E M E N T one motivation for converting to an ESOP. In an interview with Mainebiz in November, President John Ryan cited the need for "long-term sustainability, preserv- ing the culture and rewarding the team that got us here." He added: "We needed a realistic ownership transition plan." VIA Agency, a Portland advertis- ing agency, also cited the "competi- tive edge" provided by employee ownership, CEO Leeann Leahy said in a statement last year. In Topsham, Morningstar Stone and Tile took a 10-year approach to the ESOP, with employees starting out with a 30% ownership stake, the company announced in November. Clark Insurance said in January it is now 100% employee owned, completing a process started in 1992. Until January, part of the company had been owned by Gorham Savings Bank, which acquired the stake as part of a merger. Clark President Jeff Shaw said completing the ESOP conversion "allows Clark the abil- ity to remain locally owned by its employees/owners," which is signifi- cant given the number of mergers within the industry. At a Mainebiz panel discussion held last year at Bowdoin College, ESOP specialist Susan Scherbel of Bellview Associates, cautioned that employee stock ownership would not work for certain companies. Companies carrying a significant debt load, for instance. She also warned that companies wanting to convert to an ESOP structure have to be soundly managed with stable earnings. Recently, Scherbel tells Mainebiz that she continues to get calls and inquiries about the ESOP process. "It's even more than last year, as more people hear about it," Scherbel says. Maine's older population creates a ready source of businesses that may be ripe for an ownership transition. e state also has a challenging tax structure for companies, combined with inher- ently high operating costs, including energy expenses, Scherbel says. "But a lot of people don't like the alternative of a third-party sale," she says. "ey want to leave a legacy." e surge in ESOPs is help- ing keep a range of businesses busy, including accounting firms, law firms, valuation firms, trust companies and various third-party administrators. Nationwide through 2014, there were 6,717 ESOPs, with total assets of $1.3 billion and 14 million employees, according to the National Center for Employee Ownership. Of those, 22% were in the manufacturing sector. e number of ESOPs nation- wide has actually dropped from 8,874 Securities Offered Through Valmark Securities, Inc. Member FINRA, SIPC. Investment Advisory Services Offered Through Valmark Advisers, Inc. a SEC Registered Investment Advisor.130 Springside Drive, Suite 300 - Akron, Ohio 44333-2431 - 1-800-765-5201. Lebel & Harriman, LLP is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc. P: 207.773.5390 Toll Free: 888.879.5181 www.lebelharriman.com Partner Announcement: For over 35 years, Lebel & Harriman has delivered honest advice and inspired solutions to hundreds of businesses and thousands of individuals. Michael Lebel, Philip Harriman and Laurie Reed are pleased to announce the election of four new partners who will ensure continuity of the values and principles that our clients and employees have come to expect. "As we prepare for the decades ahead, we are proud to welcome Rebecca Burchill, Michelle Romano, Jennifer Breton and Josh Chase as partners in the firm" said Michael Lebel. "Each of them has significant experience in their respective discipline and together they have advised on client matters ranging from 401(k) and 403(b) Plan management, executive benefits, investments, business succession, financial and legacy planning for hundreds of clients. "The election of our new partners enables Lebel & Harriman to assure clients that we are perfectly postured to continue delivering honest advice that is in their best interest" said Philip Harriman. ESOPs in Maine T he past year has seen an unprecedented number of Maine companies convert to Employee Stock Ownership Plans. We've also included a sam- pling of legacy ESOPs. For a list of the largest ESOPs, see Page 46. 2016–17 Wright-Ryan Construction Inc., Portland Warren Construction, Freeport Mainely Tubs, South Portland Kennebec Technologies, Augusta VIA Agency, Portland Landry/French Construction, Scarborough Clark Insurance, Portland Morningstar Stone and Tile, Topsham Rock City Coffee, Rockland LEGACY: Cianbro, Pittsfield Sargent Corp., Stillwater Sebago Technics, South Portland Spinnaker Trust, Portland GAC Chemical Corp., Searsport Allen Insurance, Camden Steel-Pro Inc., Rockland Prock Marine, Rockland Moody's Collision Centers, Portland Johnny's Seeds, Fairfield S O U R C E : Companies, Mainebiz C O N T I N U E D O N F O L L OW I N G PA G E »

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