"Bringing "Purpose Equity
To Owners, Employees and Investors
ENSURING LEGACY AND ENHANCING VALUE THROUGH OWNERSHIP.
Middle Bridge Capital (MBC) is reinventing the standard private equity / LBO model. Our approach is to invest "purpose equity" to bring about Employee-Led Buy Outs. This is what we call the "ELBO" model.
Employee-owned companies are not exactly rare but neither are they common, despite the well known tax advantages that accrue to ESOP-owned businesses. The reason is that, for a founder/seller who is beginning to think about liquidity and retirement, selling to an ESOP is perceived as complex and time-consuming, thus uncertain. The market coaches those founders to go to a bank and run an auction, where the acquirer will (usually) either be a strategic buyer or a PE firm.
The problem is, most founders who care about what they have built care about their communities are not excited by this proposition, and with good reason. If the founder sells out, very often the company will change in terms of culture and direction under PE/strategic ownership. Very often, especially in a sale to a strategic buyer, its operations will be shut down and/or consolidated elsewhere, hurting small communities and workers across the nation. In the end, this choice could ultimately hurt the founder's community.
Enter Middle Bridge Capital and our "Blueprint Fund." We make it easy to sell your business to your employees when that time comes. We ensure clear and quick liquidity, fair value, and upside. When we move into a company, we bring specialized skills to ensure that the management transition to 100% ESOP ownership will be successful. We can thereby assure founders that their legacy and employees will be protected while still achieving a good return for their years of hard work and a fair return to our own investors as well.
As our nation becomes more segregated between those who are asset rich and those who are not, it is critical that we re-establish an ownership culture and constituency. MBC is in business to protect your legacy, invest in your community, and address one of our society's deepest needs.
Middle Bridge Capital offers a win-win-win path for
Founder/Owners, Employees and our Investors.
FOUNDER / OWNER
Founder/Owners win by getting a fair and certain value for the sale of the firm with upside, and by leaving a legacy for employees and supporting the local community.
Plus, selling a business to employees brings tax advantages to both the Founder/Seller and to the new employee-owned firm.
Employees win the benefits of employee ownership that include higher productivity and pay, faster growth, lower turnover or fewer, lower lay-offs, and the kind of asset accumulation that allows for a secure retirement.
These are all foundations of a bridge to the middle class.
Investors win because Middle Bridge unites an attractive return with a meaningful investment that enhances communities and reduces inequality across the United States.
Corporate tax rate for 100% ESOP owned company
Million Employees currently active in an ESOP style company
Median increased growth above peers for ESOP owned companies that adopt engagement policies
CAGR for employee ownership assets in ESOP S Corps, 2002-2012