News Summary
Horizons Incorporated, a Cleveland-based manufacturer, has officially transitioned to a 100% employee-owned company, ensuring employee security and preserving its legacy. The transition was facilitated by the Ohio Employee Ownership Center, emphasizing the importance of succession planning in local businesses as many owners approach retirement. This step positions Horizons among over 6,500 ESOP firms nationwide and reflects Ohio’s commitment to employee ownership.
Cleveland – Horizons Incorporated, a prominent manufacturer based in Cleveland since 1946, has officially transitioned to a 100% employee-owned company. This significant shift was orchestrated by the selling owners, Herb and Sam Wainer, who aimed to secure the future of their employees while preserving the company’s long-standing legacy.
The transition comes at a time when thousands of businesses across Ohio are poised for ownership changes, as many owners enter retirement age. This trend emphasizes the growing importance of succession planning in maintaining the stability and growth of local businesses.
To facilitate this transition, Horizons engaged the Ohio Employee Ownership Center (OEOC) located at Kent State University. The OEOC’s Small Business Succession Planning Program provided Horizons with crucial technical assistance, including complimentary consultations and access to valuable resources such as a succession planning guidebook. OEOC’s Director worked closely with Horizons to understand the goals of the Wainers and connect them with experienced professionals equipped to handle the complexities of employee ownership.
Horizons Incorporated specializes in durable product identification and asset-tracking solutions, utilizing advanced Metalphoto® technology across various sectors like defense, aerospace, and manufacturing. The expertise in these areas positions the newly employee-owned company for continued success.
In their search for a structured transaction, Horizons was referred to GBQ Capital Advisors, known for their proficiency in Employee Stock Ownership Plans (ESOP). GBQ conducted a comprehensive feasibility analysis to determine the fair market value for the transaction, ensuring it aligned with the selling owners’ objectives while also gearing up the employee-owned firm for sustainable growth.
The establishment of the ESOP not only met the financial expectations of the Wainers but also confirmed a stable future for Horizons’ workforce. Following this transition, Horizons joins the ranks of over 6,500 ESOP firms operating nationwide, and it is one of 360 employee-owned companies based in Ohio, marking a significant step in the state’s commitment to employee ownership.
Research conducted by the National Center for Employee Ownership has consistently demonstrated the efficacy of ESOP companies in fostering business growth and enhancing employee retention. The OEOC itself has played a pivotal role in assisting more than 700 companies with succession planning since its inception in 1987, a testament to their ongoing commitment to support businesses through the transition of ownership.
With the completion of this transition, Horizons Incorporated not only secures its legacy within the community but also places emphasis on its employee’s future, reinforcing the idea that ownership can lead to a more engaged and dedicated workforce. The collaboration with OEOC and GBQ Capital Advisors has set a strong foundation for Horizons as it embraces this new chapter in its corporate journey.
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Additional Resources
- Crain’s Cleveland: Horizons’ Journey to 100% Employee Ownership
- Wikipedia: Employee Stock Ownership Plan
- Triple Pundit: Evergreen Laundry Cooperative Cleveland
- Google Search: Employee Ownership Success
- Cleveland.com: Company Owner Charged in Deaths of Workers
- Google Scholar: Employee Ownership Benefits
- Crain’s Cleveland: Largest Minority-Owned Businesses
- Encyclopedia Britannica: Employee Ownership
- Cleveland Magazine: Phoenix Coffee Co.’s Employee-Owned Operation
- Google News: Cleveland Business Transitions
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CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton
