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An ESOP Shop

Managers and operators alike constantly look for ways to increase shopfloor productivity and efficiency at Rable Machine.  The former owner of Rable Machine, a shop located in Mansfield, Ohio, was looking to exit his healthy business.

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Managers and operators alike constantly look for ways to increase shopfloor productivity and efficiency
at Rable Machine. 

The former owner of Rable Machine, a shop located in Mansfield, Ohio, was looking to exit his healthy business. Unfortunately, he had no family members to whom he might turn over the keys, and no specific buyer for the company. By choosing an ESOP—an Employee Stock Ownership Plan—as his succession vehicle, he was able to realize tax advantages while putting shop ownership into the hands of all those who worked there.

It’s interesting to see how this shop’s culture of employee ownership and participation shapes decisions made on the shop floor. For instance, management is willing to invest in equipment that will lead to greater shopfloor efficiency. Just as importantly, shopfloor employees fully support the addition of multifunction machines and automation, for example, rather than reflexively being adverse to it. They realize it will free them to perform more valuable duties than loading machines. Read my article to learn more about this.

And if you’re wondering if an ESOP might make sense as your exit strategy, read this article. It addresses some frequently asked questions an Ohio employee-ownership consultant receives from small shop owners who think an ESOP might be a good alternative for their business succession plan.