Absolute Machine Tools Now Employee Owned
Among other things, the move of ownership to an ESOP is expected to relieve the company’s federal tax burden, improve customer service and retain workers.
Absolute Machine Tools has been sold to an Employee Stock Ownership Trust (ESOP). Owners Steve and Courtney Ortner sold 100 percent of their ownership interest to the newly created ESOP, allowing current and future employees to gain a beneficial ownership interest in the company without any personal monetary investment.
“All of Absolute’s employees are valued,” says Mr. Ortner. “Courtney and I could not have done it without their hard work and dedication, and as part of my legacy, I wanted to ensure their personal success.” Mr. Ortner will continue to be the company’s president and CEO, managing sales and the company’s day-to-day operations.
The formation of Absolute’s ESOP is intended to ensure good customer service through increased productivity and sense of ownership, to eliminate income tax obligations to federal and state governments, thereby allowing for reinvestment of cash back into the company, and to retain and attract workers.
As part of the new structure, the Ortners formed several new departmental strategic planning committees and a board of directors. These two internal entities will help to influence future financial and growth decisions for the company.