SimVentions has announced that the company completed the transfer of its ownership from existing shareholders to an Employee Stock Ownership Plan (ESOP), SimVentions reported on Friday.
“The plan has several objectives,” said Larry Root, CEO of SimVentions. “First, to provide ownership of the company to those that build and execute the work of the company; second, to provide a significant retirement benefit and a reason to want to make the company more successful; third, to provide a tool to motivate, retain, and attract employees; and finally, to create a market for the transition of equity from the current shareholders without a sale to outside interests.”
Root added that the plan will increase employee incentives and provide long-term retirement benefits. The ESOP will make the company’s employees as owners of stock in SimVentions. The ESOP shares will be allocated over time to employee ESOP participant accounts in accordance with the SimVentions ESOP Plan and related IRS and Department of Labor regulations.
Completion of the ESOP transaction was accompanied by a re-purchase of stock from minority shareholders and purchase by the ESOP of the remaining stock from the existing majority shareholders, a transaction that resulted in the SimVentions ESOP owning 100 percent of the company.
About SimVentions, Inc.
SimVentions’ corporate office is located at 100 Riverside Pkwy, Suite 123, in Fredericksburg, Virginia, 22406 and offers engineering and technology solutions to the Department of Defense, including the Navy, Army, Air Force, and Marine Corps. SimVentions is always looking for qualified candidates across all disciplines to work in the Fredericksburg, VA; Dahlgren, VA; Washington, D.C.; Charleston, SC; and Virginia Beach, VA areas.