Menke & Associates was proud to assist George & Lynch, Delaware’s largest commercial construction company, with the installation of an Employee Stock Ownership Plan (ESOP) at the end of 2021.
Headquartered in Dover, George & Lynch has been building critical infrastructure in and around Delaware since 1923, tackling projects ranging from roads and bridges to underground utilities to the runways at Dover Air Force Base. Now, as the company nears its 100th anniversary, its 360 employees have the chance to have an ownership stake in this venerable brand, at no cost to them.
“Not only would [an ESOP] be something to do for the employees who have been here for some time, but it might even be more meaningful to somebody entering this industry to attract them to come to us versus one of our competitors,” CEO Chris Baker said.
As George & Lynch President and CEO Chris Baker explained to Delaware Business Times, the decision to transfer a portion of the company to an ESOP was motivated both by the need to formulate a succession strategy as several of the company’s stakeholders began contemplating retirement, as well as the desire to reward, retain, and attract workers in a competitive field.
“We were really planning for what that might look like,” Baker said. “Would we bring on selected owners or look at some kind of strategic partnership with somebody else? Thinking about that and wanting to do something for our employees – people who have been with us for a long time – we decided to investigate an ESOP further.”
Menke & Associates designed George & Lynch’s ESOP and helped to arrange a leveraged buyout of 30% of the selling stakeholders’ shares. We will be providing administrative services going forward and look forward to helping to ensure that the company and its workers enjoy the benefits of employee ownership.
For the company, having an ESOP means considerable tax benefits, as well as creating a potent tool for recruitment at a time of widespread labor shortages.
“Not only would [an ESOP] be something to do for the employees who have been here for some time, but it might even be more meaningful to somebody entering this industry to attract them to come to us versus one of our competitors,” Baker said.
Even before the COVID-19 pandemic, construction companies increasingly looked to ESOPs as a powerful lure for new hires and a way to keep current staff engaged. In a field where maintaining long-term client relationships is key, ESOPs also offer a way to keep the company intact and in the hands of the people who know it best even after the current leadership steps down.
(For more examples of how Menke & Associates helped construction companies protect their legacy and attract new workers, read: Ringland-Johnson Construction Secures Its Family Legacy with Menke ESOP and Basden Steel Achieves 100% Employee Ownership.)
Congratulations to George & Lynch on their ESOP! We are thrilled to be a part of this exciting new chapter in your long and storied history.
Will 2022 be the year that you secure the future of your company through employee ownership? Contact Menke & Associates today to find out what an ESOP could mean for you.
Menke & Associates, Inc. has helped over 3,500 companies successfully transition to employee ownership. Our holistic ESOP approach enables a positive outcome for the company, its employees and its shareholders. We believe ownership is powerful.
