TRC Global Mobility Completes Sale To Employee Stock Ownership Plan (ESOP) — Company Now 100% Employee Owned
MILWAUKEE, Wis. (October 18, 2016) – TRC Global Mobility, an employee talent mobility company providing services for U.S., international and government clients, announced today that it has transferred 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).
An ESOP is a qualified retirement plan that buys, holds, and sells company stock for the benefit of the employees, providing them with an ownership stake in the company. TRC Global Mobility Chairman and Founder Paul Haislmaier finalized the sale in September 2016.
“As I considered a succession plan for TRC Global Mobility, I realized that selling to an ESOP would meet my objectives of keeping the company whole, the culture intact and our employees secure in their jobs. Plus, ESOP Partners, our consultant in this transaction, helped me understand the significant tax benefits that selling to an ESOP provides to both the company and its shareholders.”
According to The Employee Ownership Foundation’s 24th Annual ESOP Economic Performance Survey, the majority of ESOP companies showed increases in productivity, revenue, stock value, and profitability, all of which benefit employees.
ESOP Partners, an ESOP consulting and administration firm in Appleton, Wis., assisted with the sale, and will continue to work with TRC as the ESOP’s consultant and third-party administrator.
About TRC Global Mobility
Your future leaders might be on the next floor or the next continent. TRC Global Mobility places the world’s talent at your disposal. TRC brings clients nearly 30 years of experience, a flat, transparent organization and an independent structure that supports fresh ideas and customized solutions. As an independent, employee-owned company, we’re free from corporate bureaucracy and preconceived notions. TRC’s talent mobility services enable you to have the most capable people in the locations where they can support your success, in over 150 countries worldwide.
Visit TRC at www.trcglobalmobility.com
Employee Stock Ownership Plans (ESOPs) are qualified retirement plans that buy, hold, and sell company stock for the benefit of the employees, providing an ownership stake in the company. ESOPs are the only retirement plan allowed to borrow money to purchase stock and are generally funded only by the company. Selling part or all of a business to an ESOP enables a business owner to sell to a built-in buyer in as little as 60-90 days at full fair market value. There are many significant tax and cash flow benefits of selling to an ESOP. An ESOP also allows for a better-managed ownership transition, preservation of local jobs, and the maintenance of a company’s legacy in the community. According to the National Center for Employee Ownership (NCEO) there are approximately 7,000 ESOPs in place in the U.S., covering 13.5 million employees.
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Jerry Funaro, SCRP, GMS-T
Vice President, Global Marketing