Gootee Construction, a leading commercial construction company in New Orleans, Louisiana, has been a family-run business since 1991. Specializing in mechanical construction—including HVAC, plumbing, and medical gas installations—the company has grown to employ approximately 160 people. Ben Gootee, the second-generation owner, took over as President in 2013. Under his leadership, the company successfully navigated the challenges of the COVID-19 pandemic and continued to thrive in the healthcare construction sector.

As Gootee Construction flourished, Ben began considering long-term strategies for the company’s future. At 41 years old, he recognized that planning for an eventual exit was crucial—not just for himself, but for his employees who had contributed to the company’s success. His primary goal was to ensure a sustainable future for the business while rewarding employees who had been instrumental in its growth.

Ben explored various exit strategies and became interested in Employee Stock Ownership Plans (ESOPs). While he had heard ESOPs were complex and costly, he was determined to learn more and assess whether it was the right fit for Gootee Construction.

After thorough research and discussions with industry professionals, Ben engaged ERISA Advisory Group to guide him through the ESOP transition. Working with Bill and his team, Ben sought a trustee who aligned with his vision, understood the intricacies of ESOPs, and had experience in construction industry transactions.

Factors influencing Ben’s decision included:

• Trust and Compatibility – A strong working relationship with the trustee was essential. Bill’s expertise, personality, and approach aligned well with Ben’s expectations.
• Industry Knowledge – The ERISA Advisory Group’s familiarity with construction company financials ensured a smooth valuation and transition process.
• Firm Size & Accessibility – Ben wanted a trustee who had enough experience to handle the complexities of the ESOP but was still accessible for ongoing communication and decision-making.

The ESOP transition officially began in the summer of 2024 with a feasibility analysis provided by Gootee’s transaction consultant, Executive Financial Services (EFS). EFS along with ERISA Advisory Group provided structured guidance, outlining timelines, necessary documentation, and critical steps.

Despite unexpected challenges—such as a hurricane disrupting planned in-person meetings—the process remained smooth. Virtual alternatives ensured that key milestones were met without delay. ERISA Advisory Group, along with valuation firm HDH Advisors, provided seamless support through every phase of the transition.

On December 24, 2024, Gootee Construction successfully closed its ESOP transaction, making it a 100% employee-owned company.

Although still in its early stages, the ESOP transition has already generated excitement among employees. While some team members were initially skeptical—questioning whether there was a “catch”—Ben reassured them that the ESOP was a long-term benefit designed to enhance their financial security.

As the company moves forward, key expected benefits include:

• Increased Employee Engagement – Ownership fosters a stronger commitment to company success.
• Financial Benefits for Employees – Over the next 10–20 years, employees will see the true value of their ownership as the ESOP matures.
• Legacy Preservation – The ESOP ensures that the business remains independent and continues the family’s tradition of excellence.

Reflecting on the experience, Ben encourages other business owners to explore ESOPs as an exit strategy. He emphasizes:

• Start Early – Even if retirement is years away, planning ahead maximizes benefits for employees.
• Find the Right Partners – A knowledgeable trustee and advisory team are critical to a successful ESOP transition.
• Understand the Financials – While ESOPs require careful structuring, the tax advantages and employee benefits make them a viable and rewarding choice.

“Partnering with ERISA Advisory Group was one of the best decisions we made during our ESOP transition. Bill and his team provided expert guidance, making a complex process feel seamless. Their deep understanding of ESOPs, especially within the construction industry, gave us confidence every step of the way. Thanks to their support, we’ve secured a strong future for our employees and our company’s legacy.”

– Ben Gootee, President & CEO, Gootee Construction

Gootee Construction’s ESOP transition marks a pivotal moment in the company’s history. With ERISA Advisory Group’s expertise and strategic guidance, the company has set itself on a path of sustainable growth, employee empowerment, and long-term stability. As the transition continues to unfold, Ben remains confident that this move will secure the company’s legacy and benefit employees for years to come.