Construction ESOP
Collective
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Find your path to employee ownership.
Whether you’re curious, mid-deal or already employee-owned, here’s the shortest route to what you need. Pick the one that sounds like you, or take the ESOP Readiness Scorecard to see where your company stands.
01 · CURIOUS About 1 hour
I’m learning what an ESOP is.
Owners and CFOs starting to think about succession.
GUIDE CHAPTER
What an ESOP is, and why it fits construction
EPISODE 1 · BILL DUGUAY
The Power of Employee Ownership in Construction
ARTICLE
Why ESOPs Fit Construction: A Better Exit Than Private Equity
02 · EVALUATING Deal stage
We’re seriously evaluating, or in a deal.
Owners with advisors, a valuation or a feasibility study underway.
GUIDE CHAPTERS
Feasibility, deal structure, financing and the 8 to 16 month timeline
EPISODE 4 · ALAN STARKS
Protecting Bonding Capacity During an ESOP Transition
ARTICLE
Surety Bonding and the ESOP Conversion: Why Heavy Bonding Is Not a Dealbreaker
03 · EMPLOYEE-OWNED After the close
We’re already an ESOP.
ESOP leaders, boards and CFOs making ownership work.
ARTICLE
Understanding the ESOP Transition: What the First 1–3 Years Actually Look Like
ARTICLE
ESOP Repurchase Obligation: Why It Can Be a Growth Advantage
EPISODE 7 · RALPH DUMKE
From $25M to $80M as an Employee-Owned ESOP Contractor
ARTICLE
Life After a Construction ESOP: 7 Lessons from Bill Duguay
QUICK ANSWERS
The questions every owner asks first.
How long does a construction ESOP transaction take?
Typically 8 to 16 months from the first serious conversation to closing, including a feasibility study, valuation, trustee negotiation, financing, and surety sign-off.
How big does a construction company need to be for an ESOP?
There is no legal minimum, but the ongoing costs mean it works best for companies with roughly $2 million or more in annual free cash flow and at least a few dozen employees. Consistent earnings matter more than revenue size.
Can a bonded contractor do an ESOP without losing bonding capacity?
Yes, with early planning. The transaction creates negative book equity, so the surety needs day-one pro formas, a subordinated seller note, strong working capital, and a debt paydown plan. Bring the surety in before you engage the deal team, not after closing. Sureties do not like surprises, and a surety that helps shape the deal can tell you early what it needs to keep the program in place.
Do employees pay for their shares?
No. Shares are allocated to employee accounts as a company-funded retirement benefit, in addition to any 401(k).