Trending...
- Cleveland-Cliffs and Its Employees Donate to Address Food Insecurity in more than 45 Communities Across North America
- Kyleigh Haynes of Kodiak Properties LLC Announces Revitalization Project in Boardman, OH
- ANIMAL RIGHTS PROTEST at The Animal Foundation of Las Vegas
ALVARADO, Texas - OhioPen -- After 19 years in business, Tuxedo Distributors, Inc, one of the largest importers of automotive repair equipment in North America, is pleased to announce a sale and transition to a 100% Employee-owned company.
"Our employees have been the backbone of this business, and it gives me great joy to see them become owners of the company they have helped build," said Steve Swink, Founder & CEO of Tuxedo Distributors. "The Employee Stock Ownership Plan (ESOP) is a perfect way to reward their hard work and dedication."
Steve & Marg Swink retained RBG Capital (www.rbgcap.com), a Scottsdale AZ based Investment Banking and Wealth Management firm, to explore succession alternatives including Private Equity, Synergistic Buyers and an ESOP. Utilizing their Dual Path sale process solution for 3rd party buyers and an ESOP feasibility concurrently, the Swinks opted to sell to their employees, "those who got us here deserve an opportunity to participate in the future upside of their hard work and efforts," shared Mr. Swink.
An ESOP is a type of employee benefit plan that provides employees with an ownership stake in the company. As a qualified Pension Plan, which owns 100% of S Corporation shares, the Company will not incur Federal or State Income Taxes for as long as the ESOP owns the shares. This provision makes ESOPs particularly attractive as an alternative buyer to Private Equity.
More on Ohio Pen
"ESOPs are not a solution for every owner's succession objectives, but when they are a fit there is no stronger transaction strategy out there" shared Michael Walling, Managing Director of RBG Capital. "Through the ESOP, the government becomes the company's financial partner, directing what would have been tax dollars towards paying off the acquisition debt more efficiently."
"On behalf of all the employees at Tuxedo we offer a heart felt thank you to Marg and Steve Swink for their years of dedication and the amazing opportunity they have offered all of their employees," said Leslie Schmidt, President of Tuxedo. "Over the last year, I have come to the conclusion that there is not a finer group of people to work with than these employees. We are excited to start this new opportunity!"
The transaction financing was provided through Comerica Bank. "We are honored to provide senior financing for our longtime customer Tuxedo Distributors," said Freddy Espericueta, Comerica Bank Senior Vice President, Group Manager for Commercial Banking. "It is particularly rewarding any time Comerica can support an employee ownership deal."
Participating in an ESOP program means employees are collectively owners of the company and benefit financially from a job well done. In this way, there is direct incentive for employees to work hard and take even more pride in what they do.
More on Ohio Pen
About Tuxedo Distributors
Founded in 2004, Tuxedo Distributors, LLC, is a master importer and leading supplier of high-quality, affordable automotive lifts and other repair equipment and accessories. Tuxedo Distributors is headquartered in Alvarado, TX providing global distribution with focus primarily across the United States and Canada. For more information contact Matt Kahla at 817-558-9337 or mattkahla@tuxedodistributors.com.
About RBG Capital
Founded in 1986 and headquartered in Scottsdale, AZ, RBG Capital is a wealth advisory and sell-side Investment Bank, representing entrepreneurial business owners throughout the US. For more information, please visit us at www.rbgcap.com or contact Tim sperling, Director of Business Development at tsperling@rbgcap.com or 480-386-0309.
About Comerica
Comerica Bank is a subsidiary of Comerica Incorporated, a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $85.4 billion as of Dec. 31, 2022
"Our employees have been the backbone of this business, and it gives me great joy to see them become owners of the company they have helped build," said Steve Swink, Founder & CEO of Tuxedo Distributors. "The Employee Stock Ownership Plan (ESOP) is a perfect way to reward their hard work and dedication."
Steve & Marg Swink retained RBG Capital (www.rbgcap.com), a Scottsdale AZ based Investment Banking and Wealth Management firm, to explore succession alternatives including Private Equity, Synergistic Buyers and an ESOP. Utilizing their Dual Path sale process solution for 3rd party buyers and an ESOP feasibility concurrently, the Swinks opted to sell to their employees, "those who got us here deserve an opportunity to participate in the future upside of their hard work and efforts," shared Mr. Swink.
An ESOP is a type of employee benefit plan that provides employees with an ownership stake in the company. As a qualified Pension Plan, which owns 100% of S Corporation shares, the Company will not incur Federal or State Income Taxes for as long as the ESOP owns the shares. This provision makes ESOPs particularly attractive as an alternative buyer to Private Equity.
More on Ohio Pen
- Wohler releases out-of-band configuration tools for Riedel 2110 SFP's
- Levinger Regens Announces New Initiative to Improve Hydrogen Carbon Intensity
- Eve Wellness, a SF Breast Ultrasound Screening Clinic supports the recent FDA updates to the guidelines to inform women about breast density
- Expert tip: Private Jet Engine Maintenance Program - Pros and Cons for Preowned Jet Buyers
- Gaming and entertainment company Spinrack Corporation, appoints Jesse Norton as Chief Marketing Officer
"ESOPs are not a solution for every owner's succession objectives, but when they are a fit there is no stronger transaction strategy out there" shared Michael Walling, Managing Director of RBG Capital. "Through the ESOP, the government becomes the company's financial partner, directing what would have been tax dollars towards paying off the acquisition debt more efficiently."
"On behalf of all the employees at Tuxedo we offer a heart felt thank you to Marg and Steve Swink for their years of dedication and the amazing opportunity they have offered all of their employees," said Leslie Schmidt, President of Tuxedo. "Over the last year, I have come to the conclusion that there is not a finer group of people to work with than these employees. We are excited to start this new opportunity!"
The transaction financing was provided through Comerica Bank. "We are honored to provide senior financing for our longtime customer Tuxedo Distributors," said Freddy Espericueta, Comerica Bank Senior Vice President, Group Manager for Commercial Banking. "It is particularly rewarding any time Comerica can support an employee ownership deal."
Participating in an ESOP program means employees are collectively owners of the company and benefit financially from a job well done. In this way, there is direct incentive for employees to work hard and take even more pride in what they do.
More on Ohio Pen
- The Columbus Fashion Council Presents The Fashion Presentations: Spring 2023
- One Day children's book is a powerful book that empowers children, parents, and families
- Hall of Fame Resort & Entertainment Company Announces Release Date for Fourth Quarter 2022 Results
- Columbus: Mayor Ginther Appoints Rena Shak to Lead the Office of Violence Prevention
- .Store Domains launches Elevate.store – a free-to-use platform for online sellers with deals on business tools
About Tuxedo Distributors
Founded in 2004, Tuxedo Distributors, LLC, is a master importer and leading supplier of high-quality, affordable automotive lifts and other repair equipment and accessories. Tuxedo Distributors is headquartered in Alvarado, TX providing global distribution with focus primarily across the United States and Canada. For more information contact Matt Kahla at 817-558-9337 or mattkahla@tuxedodistributors.com.
About RBG Capital
Founded in 1986 and headquartered in Scottsdale, AZ, RBG Capital is a wealth advisory and sell-side Investment Bank, representing entrepreneurial business owners throughout the US. For more information, please visit us at www.rbgcap.com or contact Tim sperling, Director of Business Development at tsperling@rbgcap.com or 480-386-0309.
About Comerica
Comerica Bank is a subsidiary of Comerica Incorporated, a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $85.4 billion as of Dec. 31, 2022
Contact
Tim Sperling, Director of Business Development
tsperling@rbgcap.com or 480-386-0309
***@rbgcap.com
Tim Sperling, Director of Business Development
tsperling@rbgcap.com or 480-386-0309
***@rbgcap.com
Source: RBG Capital LLC
0 Comments
Latest on Ohio Pen
- Zachary Levi, Christopher Lloyd, Star Trek Q&As Among Top FAN EXPO Cleveland Programming Panels
- Fridge Art Fair New York City May 2023
- Empowering SMEs: Innervation's Supply Chain Finance Solutions for Diverse Business Growth
- AdvisorVault Partners With Compliant Workspace to Help FINRA Firms Achieve 17a-4 Compliance on Microsoft 365
- Rohrer Welcomes New CEO Tim Swanson
- 5 Ways to Eliminate Ground Loops – Part I
- The New Real Estate "Just Looking" Program Is A Big Hit With Atlanta Area Residents!
- Introducing Music360, the New Social Music Streaming App
- Battelle, Climeworks, Heirloom Carbon, Gulf Coast Sequestration Bid on Direct Air Capture Hub for Department of Energy
- Marsha Gay Reynolds Shares Insights on In-Home Care Post-Pandemic
- The Dallas Opera Announces 2023/2024 Season featuring World Premiere of The Diving Bell and the Butterfly
- IOTech announces a new release of Edge Xrt, its high performance data connectivity solution for industrial systems
- Kyleigh Haynes of Kodiak Properties LLC Announces Revitalization Project in Boardman, OH
- ANIMAL RIGHTS PROTEST at The Animal Foundation of Las Vegas
- Cleveland-Cliffs and Its Employees Donate to Address Food Insecurity in more than 45 Communities Across North America
- Graphis to Publish Kit Hinrichs' New Book: Narrative Design
- DayGlo Announces New Product Launch of Elara Luxe™ Cosmetic Colorants
- The expansion continues at Right Cars Global Rentals as it officially announces its opening in the Dominican Republic
- King Me: Loving and Leading in a Wounding World Releases March 15, 2023
- The Official Drink Of Juneteenth Atlanta 2023