The Journey to an ESOP podcast is a resource for business owners who may want to consider an employee stock ownership plan (ESOP), which is an employee benefit plan that gives employees ownership interest in the company and allows them to benefit from the future growth in value of the company. The podcast explores ESOPs as an option for an exit plan, a way to implement more succession, a method to grow the company and more.
Frady joined The ESOP Guy to examine ESOPs as a solution for government contractors in partial and 100 percent sales; the popular ESOP options for succession, exit and growth; how government contractors in Huntsville use ESOPs and the new SBA ruling that institutes changes for ESOPs and contractors.
“If you asked me about 20 years ago, my opinion on ESOPs was very different,” Frady said. “I didn’t know much about them and had not heard a lot of success stories. But once you start learning more about them, it presents a viable option for liquidity, and it’s an opportunity for the new employee owners to enjoy the growth in the value of the company. Once people in Huntsville started to see the success of ESOPs, they started asking about them. I got familiar with how they work, started assisting clients in the evaluation of an ESOP transaction as an exit strategy and noticed over the years that the ESOP community in Huntsville was booming.”
When asked about why he thinks ESOPs are a relatively good solution for government contractors, Frady said, “I think it’s the culture that these businesses have built. The employees there are used to a family feel, and the owner wants to preserve that and is willing to give up a bit of money to do so. The employees appreciate that, especially after they ask around other ESOP companies and find out the beneficial effect of the growth in stock value on the employee retirement accounts. In Huntsville, people here have a really good opinion on ESOPs.”
Frady is a Member in the firm’s Consulting division and leads the firm’s Government Contracting team. He has over 20 years of accounting and management experience. Frady was formerly president of Capstone Consulting Partners, Inc., and he has also served as CFO and COO for various government contractors. He resides in Huntsville with his wife and two daughters.
Warren Averett’s Government Contracting team can provide a variety of services ranging from full-service accounting to outsourcing needs. They have the government contract, DCAA and FAR knowledge to ensure that government contractors stay in compliance.