Business
What does it take to execute an ESOP successfully? To get a clear perspective about this topic, I talk with Herb Sargent, the President and CEO of an ESOP, Sargent Corporation, a construction company based in Maine. This podcast addresses some of the following essential points: the importance of distinguishing your runway for ownership transition and management or leadership transition to execute an ESOP successfully; the importance of identifying the why and why Herb’s “why” is unique; how you go about the process of exploring an Aesop and why understanding the mechanics of an ESOP is essential; identifying a mentor in your particular construction vertical so that you can look at the pros and cons of an ESOP structure I believe this episode will significantly benefit those interested in the mechanics in the implementation of an ESOP in their construction companies. Tune in to this today! Discussion Points: 0:00 Introduction 3:55 Herb Sargent’s background and how he got into ESOP 6:09 Options when you decide to get out of construction 6:51 Herb’s emotional response to the sale of H.E. Sargent 8:17 How the sale of H.E. Sargent influenced Herb’s future decisions 9:18 Herb’s experience starting his own company 10:14 Why Herb bought back H.E. Sargent 12:49 The motivation behind purchasing H.E. Sargent 14:29 The decision to do ESOP 16:10 Separating the ownership transition from the management transition 17:16 Ensuring smooth turnover 18:15 Where Herb found models and mentors for the ESOP transition 19:36 How employees can start buying into the ESOP 23:09 ESOPs struggle when owners just want to make money 25:36 How seasonality of the business affect people’s ability to build value in the ESOP 28:51 Starting an internal podcast 30:45 Communicating the ESOP life to employees 31:30 Initial steps to take if you’re considering ESOP 35:37 Working hard to build credibility with your crew 35:52 Herb’s journey in finding the next CEO of his company 37:59 BONUS: Herb’s restaurant recommendation in Stillwater, Maine About the Guest: Herb Sargent is the President and CEO of Sargent Corporation. It is an employee-owned earthwork construction company that traces its beginning to 1926 in Alton, Maine. They have nearly 400 employees working in seven states, specializing in commercial, industrial, and institutional site preparation, landfill construction, utility projects, airports, athletic facilities, and wind power access. Resources: Check out Sargent Corporation’s website https://sargent.us/employee-owned/ Herb’s restaurant recommendation https://masonsbrewingcompany.com/ Do Your Project Executives Need to Become Better Leaders? Book a 10-minute call with Eric Anderton to see if/how he can help (https://10minutes.youcanbook.me/) Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to the Construction Genius: A Leadership Master-Class Podcast on Apple Podcasts, Spotify, and Stitcher. Thank you for tuning in!