A-R-T Associates Transitions to Employee Ownership in Atlanta

A-R-T Associates Becomes a 100% Employee-Owned Company

In a remarkable shift within the business landscape, A-R-T Associates, a prominent national experiential design firm, proudly announces its recent transition to 100% employee ownership. This landmark change is facilitated through the support of Southeast Acquisition Capital (SEAC) and Allivate Impact Capital, marking a significant milestone for both the firm and its employees.

Background of the Transition

Founded with a focus on environmental graphics and custom art installations, A-R-T has established itself as a leader in crafting unique visual solutions. The firm's transition to an Employee Stock Ownership Plan (ESOP) not only preserves the existing jobs but lays the groundwork for future growth and additional job creation. Michael Morosi, Managing Partner of SEAC, notes the immense potential of ESOPs, stating that they have generated over $2 trillion in wealth for U.S. workers, though primarily at large corporations. This transition is a push towards a more equitable model, allowing smaller firms like A-R-T to thrive under employee ownership.

The Role of Southeast Acquisition Capital

As the primary sponsor, SEAC has led the way in establishing the ESOP and is committed to providing strategic guidance to the A-R-T management team. Their innovative approach focuses on leveraging ESOP structures to ensure broad ownership distribution among small businesses, breaking the stereotype that only larger companies can benefit from such arrangements.

“Southeast's model unites mission-driven capital providers, like Allivate Impact Capital, with operational talent to transition family-owned businesses into employee ownership,” said Morosi. This approach safeguards the legacy of A-R-T while ensuring that the employees, who are integral to its success, have a stake in its future.

A Legacy Preserved

Christopher Drew, the former President of A-R-T Associates, expressed his motivation for the transition, stating, “The employees built A-R-T into what it is today. As we considered our retirement options, we wanted a transition that honored their contributions.” With the guidance of Generational Equity, a merger and acquisition advisory firm, Drew and his team chose to pursue the ESOP initiative.

This decision aligns with a broader trend of increasing employee ownership in various sectors, prompting a re-evaluation of how businesses can remain sustainable and community-oriented.

New Leadership for a New Era

In conjunction with this transition, Geoffrey Easterling has been appointed as the new CEO of A-R-T Associates. His extensive background in strategic planning and operations, ranging from military service to consulting roles, will be instrumental as A-R-T embarks on this new chapter focused on long-term value creation. Easterling is poised to lead A-R-T in its mission to empower employees and leverage their creativity to enhance the company’s offerings.

Support from Allivate Impact Capital

The role of Allivate Impact Capital has been critical in this transition, providing the necessary funding through the Allivate Employee Ownership Fund. This fund is dedicated to facilitating employee ownership transitions while ensuring job security, wealth-building opportunities, and long-term stability within the local economy. Doug Schaeffer, Co-Founder of Allivate, emphasized the transformative power of ESOPs, stating, “They unlock liquidity for retiring owners and offer financial security for employees, creating generational wealth.”

Looking Ahead

As A-R-T Associates navigates through this transformative phase, the company looks forward to fostering an inclusive and dynamic workplace where employees are motivated to contribute to the firm’s success actively. The future of A-R-T is bright as it consolidates its role in the design industry while simultaneously enhancing the lives of its employee-owners.

For more information about A-R-T Associates and its new ESOP structure, please visit A-R-T Associates and follow them on social media. This move not only exemplifies the commitment to preserving the company's creative mission but also sets a precedent for other firms considering similar pathways.