Providence Engineering is a leading engineering firm that specializes in providing constructible, affordable, and timely engineering solutions for architects, contractors, owners, and fabricators. Providence Engineering excels in Structural, Mechanical, Electrical, and Plumbing design and drafting services for new buildings, renovations, and additions, with a particular expertise in warehouse, food processing, and cold storage design. They employee over 75 employees with licensure in 49 states.
SITUATION
Providence Engineering was privately held with three main partners. David Bernhardt, the President, was ready to investigate transition options after his two partners announced that they were ready for retirement. After exploring various avenues for the future of Providence Engineering, including seeking external buyers, internal acquisition, or an ESOP, the partners ultimately decided that the most fitting path forward was to transition to an Employee Stock Ownership Plan (ESOP).
Solution
This strategic decision was facilitated with the assistance of Business Transition Advisors (BTA), who played a pivotal role in guiding Providence Engineering towards this transformative choice that aligns with their values and long-term vision. BTA worked with the law firm Dinsmore to transition Providence to 100% employee owned. David Bernhardt explained, "At a point after really digging into the options, it became clear that for Providence, the best option was to ESOP the company. It allows Providence to remain Providence. We didn't get bought or sold; the brand remains and the culture remains." David is confident that the ESOP will help contribute to Providence’s continued growth.
"Dan Zugell and the BTA team played a crucial role in our ESOP transition. ESOPs have a lot of moving parts but having BTA coordinating every aspect allowed me to focus on running the company. Without BTA, it would have taken us twice or three times as long. Dan put a great team together, and I liked the approach. I wouldn't have done it any differently. If I had to do it all again, I would do it the same way." - David Bernhardt
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