The Brix Group, a leader in commercial vehicle onboard communication systems, becomes 100% employee owned
The Brix Group majority shareholders opted for a well-timed transition to employee ownership as a solution for their succession strategy. By working with experts in the field, they were able to plan their exit in an orderly and cost effective way, and their staff was rewarded with a valuable ownership stake in the firm.
With the help of The Menke Group, The Brix Group has extended ownership to their employees by way of an Employee Stock Ownership Plan.
In addition to helping create financial security for employees, the plan is designed to encourage and reward increased employee productivity and efficiency. According to The Menke Group, a 5 or 10 percent increase in individual employee productivity can result in increasing company profitability by 50 percent or more. The ESOP creates a direct link between employee productivity and employee benefits, and nurtures a collaborative culture where the employee-owners and the bottom line can thrive.
"As part of our overall succession strategy, we sold The Brix Group to our employees, rather than to a third party, as a way to ensure our employees are rewarded for their hard work and success," says Harrison Brix, President & CEO of The Brix Group. "It is also important to us that our current and future customers know that there is a transition plan in place and that The Brix Group will continue to operate for many years to come, with all of our valuable employees now being owners of the business. We want to thank the Menke Group for their excellent advice and counsel in structuring and launching the ESOP for us."
ESOPs work particularly well in companies where human capital is a key component of its success. An ESOP rewards and retains staff in a remarkably efficient manner, allowing for a well-executed succession strategy.
The Menke Group is a nationwide, full service advisory firm dedicated to the advancement of employee ownership across America, and has helped over 3,000 companies become employee owned as an ultimate strategy for shareholder exits and succession planning. Learn more about The Menke Group here.