Long-Lasting Client Partnership Spanning Three Generations
Representing Three Generations of Business Owners
For nearly 50 years, our firm has assisted Encon with smooth transitions in its ownership spanning three generations of business owners.
Our relationship with Encon began in 1970, when a licensed engineer and entrepreneur formed the company to provide design, installation and service for heating and air conditioning systems. The owner’s business philosophy was to provide “quality, quality and more quality” for his customers and he instilled this philosophy in his employees.
When the time came for the founding entrepreneur to create an exit strategy, we determined that the best alternative for him was to sell the business to two key employees in a leveraged buyout. With appropriate conflict waivers, we represented the purchasers and continued to represent the founder in his other matters.
As is the case in virtually all leveraged buyouts, it was advantageous for the employee-purchasers only if they could grow the business significantly and increase its value. When they accomplished this and began to consider their future exit strategy, we worked with them to develop a program to retain two key employees and incentivize them to purchase the business in a second leveraged buyout.
When those employees purchased the business, we continued to represent the business and the purchasers, so that we then represented all three generations of the owners. The third owners of Encon continued to grow the business dramatically, and we have counseled them in the company’s sale to a private equity group.