Mainebiz

V O L . X X I I I N O. V I M A R C H 2 0 , 2 0 1 7 36 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 F O C U S A variety of motivations Over the past year, ESOPs have been a frequent topic of coverage and conversation. A common theme among companies that converted to an ESOP structure within the past year was the desire to provide long- term stability while keeping current management in place. Wick Johnson, who had been sole owner of Kennebec Technologies in Augusta, told Mainebiz in December 2015 that when the company converted to employee ownership he received some cash up front, but also, in eff ect, served as a lender. For the company's 65 employees and the future of the company, he felt an ESOP was the best course of action. "I did not want to sell the company [outright]. Local ownership goes away," he told Mainebiz. Landry/French Construction, which converted to an ESOP in May 2016, said options included selling to another company or sell- ing to an existing employee. In the end, the Scarborough construction fi rm opted for ESOP structure. At Mainely Tubs, Jim Van Fleet bought the Scarborough retailer in 1993 when it was in 700 square feet, built it to a $10.5 million in sales in 2016 and 39 employees. Working with Machias Savings Bank, Spinnaker Trust and BerryDunn, Van Fleet, 68, was able to do a 100% ESOP con- version. "[An ESOP] allows an owner to give back and it costs employees nothing," Van Fleet told Mainebiz in December. Wright-Ryan Construction, which became an ESOP in October 2016, cited the labor shortage in the construction industry as » C O N T I N U E D F RO M PA G E 3 4 877.700.6800 | mainecf.org Stewards for charitable giving. Helping donors help Maine. For all Maine gives, it's no wonder we give back. For the first freezing dip in the lake… you realize songbirds have returned… For the morning you realize the morning you realize the morning songbirds have returned… For the first freezing dip in the lake… A lot of Maine A lot of Maine A lot of Maine A lot of Maine A lot of Maine A lot of Maine A lot of Maine A lot of Maine A lot of Maine companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP companies go the ESOP route. They want to keep the business here. They may be a major employer in town. — Jeannine Pendergast Spinnaker Trust

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