How Two Georgia Construction Companies Created Equal Wealth for All Employees Through ESOP

Danny Jordan and Jason Fernandez had built something special in Marietta, Georgia. TuckerCraft, their 20-year-old general contracting business, had completed over 4,000 multifamily units across the Southeast. RestoreAll, their 17-year-old restoration company, handled emergency flood, fire, and mold remediation with immediate build-back capabilities.

But these partners wanted to do something revolutionary: create an Employee Stock Ownership Plan that would give their field workers the same wealth-building opportunities as their highest-paid executives.



The Power of Two Businesses Working Together

TuckerCraft specializes in multifamily construction including apartment complexes and condominiums throughout the Southeast, with unlimited general contractor licenses in seven states from the Carolinas through Florida and Virginia.

RestoreAll provides the perfect complement with comprehensive restoration services. When a property needs emergency restoration, they can complete the work in days rather than weeks, then immediately begin rebuild services through TuckerCraft.

This dual-business approach creates remarkable synergies. Nearly every multifamily developer relationship generates RestoreAll opportunities, while restoration clients frequently become new construction prospects. When one market segment experiences downturns, the other provides stability.

Why They Chose Employee Ownership

After 20 years of employee contributions to company success, Danny and Jason wanted meaningful wealth-sharing opportunities that other succession strategies couldn't match. The ESOP structure provided extended exit timeline flexibility while enabling gradual transfer of key management decisions to proven leadership.

Alternative options including private equity or competitor sales presented unacceptable risks around employee retention, operational control, and company culture preservation.

Revolutionary Approach: The $100,000 Cap Innovation

Here's where TuckerCraft and RestoreAll did something groundbreaking. Instead of using standard compensation-based ESOP allocation, they capped the calculation at $100,000 annual salary. This means employees earning $100,000 receive identical ESOP benefits as those earning $300,000 or more.

What This Really Means

• Superintendents get the same ESOP benefits as executives
• Assistant superintendents build wealth equally with project managers
• Field personnel receive proportional opportunities regardless of salary differences
• Everyone who contributes to daily success shares equally in long-term wealth creation

This customization demonstrates company commitment to valuing all contributors equally, particularly recognizing field workers who deliver the experience every day.

Immediate Cultural Transformation

The ESOP announcement generated exceptional response among field personnel. Multiple employees shared that the ESOP provided their first realistic path to retirement, transforming long-term financial outlook for workers with limited previous retirement savings.

Field workers expressed renewed enthusiasm for safety, efficiency, and client service. Employees began developing new tools and processes, including comprehensive cost databases and enhanced client outreach efforts.

Staff now proactively identify waste reduction opportunities, recognizing direct impact on share price and personal wealth. Workers who never previously engaged in business development began cold-calling clients and reconnecting with past customers.

Tax Benefits That Make It All Possible

Operating as a 100% S-corporation ESOP provides significant competitive advantages. Despite closing in December, the company achieved several hundred thousand dollars in tax savings during the first partial year.

Tax savings alone more than cover all ongoing ESOP administrative expenses by approximately 10-to-1 ratio, making the structure financially advantageous beyond employee benefits. Enhanced cash flow accelerates debt retirement while funding continued business expansion.

Growth Strategy Through Employee Ownership

Danny and Jason's leadership perspective evolved from maintaining a comfortable $50-60 million revenue range to aggressive growth targets including doubling revenue in three years and quadrupling within five years.

Employee ownership enables recruitment of industry-leading professionals who recognize long-term wealth-building potential. Their employment value proposition now includes:

• 100% employee-paid health insurance 401(k) matching 
• Flexible time off Semi-annual bonuses Equal ESOP ownership opportunities

Project Management Lessons Applied

As experienced project managers, Danny and Jason brought unique perspectives to ESOP transaction complexity. Successfully managing 20-30 specialists required sophisticated project management but felt seamless due to professional coordination.

Over-preparation for evaluation meetings, bonding discussions, and stakeholder communications proved essential for optimal transaction terms and smooth implementation.

Key Insights for Construction Owners

Balance sheet preparation matters. Understanding transaction impact on financial statements and preparing explanations for bonding companies proves essential for continued operations.

Communication is ongoing. The closing represents the beginning of cultural transformation requiring sustained effort to maximize employee engagement.

Professional guidance essential. Success requires openness to extensive coaching from ESOP specialists, as employee ownership involves unique complexities.

Leadership clarity helps. Clearly identifying future leadership team members ensures smooth transition and ongoing operational excellence.

Creating Lasting Value

TuckerCraft and RestoreAll's ESOP journey demonstrates how construction companies can leverage employee ownership to achieve multiple strategic objectives simultaneously. Through innovative customizations that prioritize field worker wealth creation and sustained commitment to employee engagement, they've created a model for successful construction industry ESOPs.

For construction business owners seeking succession solutions that reward employees and accelerate growth, their experience shows the transformative potential of well-executed employee ownership plans that truly benefit all stakeholders equally.

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