You’ve spent years building your company. The right succession plan ensures it continues to grow on your terms.
When you step away, what happens to your business?
Many manufacturing owners know they need a plan but are not sure where to start. There are multiple paths to consider. Some allow your business to continue with the people who helped build it.
Succession planning starts with timing.
Starting early gives you more control over what happens next. It allows you to explore options, evaluate outcomes, and move forward with clarity.
Without a plan, decisions can become more difficult and more limited over time.
Explore your options.
Many owners consider selling to another company or transitioning out over time. Each option carries different outcomes for your business, your employees, and your future.
Understanding these options is the first step toward making the right decision.
A structured path for transition.
Employee ownership, including Employee Stock Ownership Plans (ESOPs), provides a structured way to transition ownership while keeping your business operating and supporting your team.
For some manufacturing companies, it can offer a clear and practical path forward.
Why owners are exploring this approach.
- Employee-owned companies see approximately 8 percent productivity gains
- Businesses often experience stronger retention and engagement
- ESOPs can provide meaningful tax advantages
- Transitions can occur without requiring employees to purchase shares directly
- Employee-owned companies often demonstrate strong long-term performance
Successful transitions in action.
Voodoo Brewery is a quirky brewery headquartered in Meadville, PA. When Voodoo transitioned to an ESOP in 2016, they became one of the smallest employee owned companies in the country with only 17 employees. In the following two years, Voodoo grew to more than 80 employees and opened 5 new pub locations. Voodoo Brewery says their increased employee engagement has played a crucial role in the growth and expansion.
“It’s not a sense of ownership, it’s genuine ownership – the employees have a completely different mentality. Employee rollover is essentially non-existent. We’ve got career chefs, career cooks, career bartenders.”
Matteo Rachocki, CEO
Dansko was founded in 1990 by Mandy Cabot and Peter Kjellerup after finding inspiration for their signature clogs on a trip to Europe. Based in West Grove, PA, this comfort footwear company sets the standard for excellent shoes for people who demand quality and comfort. Dansko employs more than 150 people and is 100% employee owned.
“This transition to 100% employee ownership marks the continuation of Dansko’s commitment to its employees, its community, and its values…Through our employees, Dansko will learn, evolve, and regenerate itself virtually forever, ensuring that we are able to deliver our brand promise today, tomorrow, and for generations to come.”
Mandy Cabot, Co-founder and CEO
NewAge Industries manufacturing headquarters is located in Southampton, PA. NewAge is one of the premier manufacturers and fabricators of plastic tubing and hose and a supplier of fittings and clamps. From 2006 to 2019 NewAge slowly transitioned to a 100% ESOP company. During that time their share price increased 975% and they became 100% tax free.
“I’ve had a lot of other business owners ask me, ‘Why employee ownership? Why not just take the cash and walk away?’ And my response has always been, ‘Because I don’t want to see the company that my father started, and that we’ve worked so hard to build, get broken into pieces, or shuttered, or absorbed by some big conglomerate.’ “
Ken Baker, CEO
Take the first step.
DVIRC works with manufacturing business owners to help them understand their succession options and determine the right next step.
Our approach is practical and focused on your goals. We take the time to understand your business, review your options, and provide clear direction.
If employee ownership is a fit, we connect you with trusted experts, including our partners at the Pennsylvania Center for Employee Ownership, who support implementation.
Whether you are 3 to 10 years from stepping away or beginning to think about succession, this conversation is designed for manufacturing business owners who want their company to continue operating successfully and are exploring their options.
Start with a conversation.
A short conversation can help you better understand your options and determine what comes next for your business.