Generational Group Advises Kellogg & Sovereign Consulting in Transition to ESOP

Generational Group, a leading mergers and acquisitions advisory firm for privately held businesses, is pleased to announce the transition of its client Kellogg & Sovereign Consulting to a 100% employee-owned company through an Employee Stock Ownership Plan (ESOP). The transaction closed on June 7, 2024.

Kellogg & Sovereign Consulting (K&S), renowned for providing top-tier program management services to schools, libraries, and rural healthcare providers, is excited to announce its transformation into a 100% employee-owned company through an ESOP. This strategic move paves the way for sustained growth and success and highlights the company's deep loyalty to and faith in its employees.

K&S, recognized for expertly managing the E-Rate Program for schools and libraries and the FCC’s Rural Health Care Program for health care providers, has earned a stellar reputation for its excellence and client-first approach. As a reliable partner in navigating federal funding programs, K&S remains dedicated to delivering exceptional service.

An ESOP is an employee benefit plan that provides current and future employees with ownership stakes in the company through stock shares. Functioning similarly to a 401K, the Trust invests in company stock. It holds these assets for employee-owners, allowing K&S employees to benefit from a retirement plan without making out-of-pocket contributions, thereby securing their financial futures.

This ESOP enables K&S employees to play an active role in the company's growth and success, fostering a culture of shared purpose and mutual investment in each other's accomplishments. This approach leads to improved performance, higher retention rates, and boosted morale.

CEO Jason Ramey and CFO Karina Roiuk-Yu, who oversees HR and employee benefits, will maintain stability and continuity during this transition to employee ownership. "We are thrilled to transition K&S into a 100% employee-owned company," said Jason Ramey. "This move rewards our dedicated employees and positions us for sustainable growth and continued success. Our team is the backbone of our company, and I am confident that this new structure will further enhance our collaborative and innovative culture."

Karina Roiuk-Yu added, "Becoming an ESOP strengthens our commitment to our employees and clients alike. This transition enables us to invest in our people and our future, driving forward our mission to provide exceptional service and support to our valued clients."

Generational Group, an investment banking and financial advisory firm, and Lynch, Cox, Gilman & Goodman attorneys guided Kellogg & Sovereign Consulting. K&S appointed an experienced trustee to represent ESOP participants' interests, ensuring a smooth transition to employee ownership.

Michael Goss, Generational Group Executive Managing Director of M&A – Central Region, and his team, supported by Vice President M&A Brennon Dunbar, closed the deal. Senior Managing Director David Robinson and Senior M&A Advisor Mike Moore established the initial relationship with Kellogg & Sovereign.

“K&S has a stellar reputation in the markets it serves and dedicates its time and resources to ensuring that schools, libraries, and rural healthcare systems can capture as much benefit from available Federal funding as possible,” said Goss.

He added, “Jason has an incredible vision of ongoing growth ahead for K&S, and his actions to transition ownership to all employees are a great testimony to his professional character and desire to ensure that those who have built the business into what it is today and will continue to pour their sweat equity into it tomorrow will be rewarded with more robust retirement benefits through the ESOP.”

About Generational

Generational is one of North America's leading M&A advisory firms headquartered in Dallas.

With more than 350 professionals located throughout 17 offices in North America, the companies help business owners release their business's wealth by providing growth consulting, merger, acquisition, and wealth management services. Their six-step approach features strategic and tactical growth consulting, exit planning education, business valuation, value enhancement strategies, M&A transactional services, and wealth management.

The M&A Advisor named the company Investment Banking Firm of the Year three years in a row Valuation Firm of the Year, North American Investment Bank of the Year, and Consulting Firm of the Year. For more information, visit https://www.generational.com.

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