Grow your Company with an ESOP
Ross Video, a technology production company, uses an ESOP to engage employees, achieving 14 years of 17% year over year growth and expanding the company from 225 employees to 1500.
“If employees are engaged as owners I think all boats rise, it positively impacts the morale of people around here.” – David Ross, Ross Video CEO
Ross Video employees were asking to purchase company shares. The owner David Ross had no intention of selling the business and was unsure if he could implement an ESOP if he didn’t plan on a liquidity event in the near future.
After attending an ESOP Builders seminar, David learned that an ESOP can offer limited liquidity to employees through models like a mini-market.
Prior to implementing the ESOP, the company was coming out of three years of barely positive growth.
How we Helped
Using our ESOP Transformation Model, we worked with Ross Video to design and implement a plan that would meet the owner and employee goals.
As part of our process, we created an ESOP team of employees who helped design the plan. We also hosted employee education information and education sessions to ensure everyone understood the risk and rewards available through the ESOP.
In addition, Ross Video also asked everyone who invested in the ESOP to sign a form indicating that they were aware that this was a long-term investment and the company wasn’t going to be sold or go public.
About 10 years after launching the ESOP, David decided to announce plans for an IPO
in the future. With 400+ employee shareholders in place, everyone is now doubly
excited about what’s to come.
- The company experienced 20% year over year growth the first year.
- Ross Video doubled in size in two and a half years.
- Since implementing the ESOP, Ross Video has experienced 14 years of consecutive 17% year over year growth.
- The number of employees multiplied from 225 to 1500 employees.
- The share price jumped from $3 to $27 per share.