News
What’s Brewing with ESOPs? Modern Times Brewery Implements ESOP
Modern Times Beer Co. has implemented an ESOP to own 30% of the Company. Brewbound.com reports that the 4-year-old beer company is the first employee-owned brewery in the state of California.
Modern Times founder and majority shareholder Jacob McKean was looking for a way to bring a return to its investors and to set up a model for high employee engagement, saying:
“So we’re coming out of this deal with happy employees, happy investors and a greatly expanded war chest of capital. Selling to a strategic buyer or private equity firm was not only completely unnecessary for growth, it didn’t offer half as good of a deal by comparison.”
He added that he would like eventually to become 100%-employee-owned, like fellow craft brewers New Belgium Brewing, Deschutes Brewery and many others.
Interestingly, Mr. McKeon expressed some disappointment that there were not more employee-owned craft breweries.
About The Author
Tim is President & Managing Partner of DeWitt. He is also a partner in the Greater Milwaukee office specializing in Employee Stock Ownership Plans (ESOPs) and Employee Benefits. He can be reached at 262-754-2869.
View Author InfoRecent News
Disclaimer
One of the best features about our website articles and blog entries is that they are timely—you get up-to-date information on the law as it exists at the time. The downside is that the law changes, but our older entries don't. That means we can't guarantee you are getting the most current law when reading through past entries. Please don't take these articles and blog entries and rely on them as legal advice. Give us a call instead, for specific and pointed advice for your particular situation. Note that contacting us does not create an attorney-client relationship, unless you are accepted as a client of the firm.