Haverford Systems, a Downingtown, Pennsylvania-based AV integration company, has become 100 percent employee-owned following the establishment of an employee stock ownership plan (ESOP).
The move marks a significant change for the company, which was founded in 1987 as a family-owned business by Hugh and Eileen Richards. Rather than selling to a larger competitor or private equity firm, the founders opted to transfer ownership to employees through the ESOP structure, which distributes company shares to eligible staff as a long-term retirement benefit.
Joseph Mulcahy, president of Haverford Systems, said: “Haverford Systems has thrived as a family-owned business for nearly 40 years, and it was very important to our founders that the company continued to thrive after stepping away from ownership. We believe the transition to an ESOP will not only reward our team, but also help foster growth, encourage innovation, and create yet another incentive for future employees to consider joining our organisation.”
As a registered S-Corp, the ESOP status also frees Haverford from state and federal corporate tax obligations, the company says, providing increased liquidity and cash flow to support future expansion. Leadership continuity is also cited as a key benefit, with existing management remaining in place under the new structure.
Haverford Systems joins approximately 6,300 ESOP companies across the United States, collectively comprising 10.7m active employee-owners. The transfer of ownership became official on January 23.
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