Kirsch CPA Group Transitions to 100% Employee Ownership

Kirsch CPA Group

Sep 25, 2024

We’ve taken a big step at Kirsch CPA Group, and we’re excited to share what that means for all of us: clients, prospects, team members, aspiring team members and partners.

Our transition to an Employee Stock Ownership Plan (ESOP) is the culmination of long-planning and a deep commitment to preserving the unique culture and client service model that the firm was built on.

As we planned for the succession of the firm, we knew that it was important to design our plans for the next generation of leadership around a model that would allow us to continue to cater to small and mid-sized businesses in the Tri-State area with the same level of exceptional, holistic service we have always provided.

“Through the ESOP, we’re empowering our team to have a direct stake in the firm’s success. We are confident that this ownership model will drive innovation, maintain exceptional client service, and foster a collaborative environment.”
–Kirsch CPA Group Founder, John Kirsch

As an ESOP, we can drive the next chapter of our growth while continuing to embrace a culture that thrives on helping our clients grow and succeed – and that makes Kirsch a great place to grow a career in accounting.

“By remaining independent, we are reaffirming our commitment to providing personalized, high-quality accounting, tax and advisory services to clients in the Tri-State area and beyond. This transition to employee ownership allows us to maintain local decision-making and the exceptional level of service our clients have come to expect,” said founder John Kirsch.

An Empowered Team and a Collaborative Environment

“Through the ESOP, we’re empowering our team to have a direct stake in the firm’s success,” said Kirsch. “We are confident that this ownership model will drive innovation, maintain exceptional client service, and foster a collaborative environment.”

CEO Pete Abner emphasized the transition’s importance for driving long-term success. “It has become increasingly common for CPA firms to pursue a merger strategy to address succession planning and team bench strength,” he explained. “After carefully reviewing many options, it became evident that an employee ownership structure was the best strategy for Kirsch CPA to thrive long-term. It allows us to preserve our unique client service model that focuses on serving clients in an advisory capacity. We believe the employee ownership model is the ideal structure for sustainability.”

A Firm Where Team Member-Owners Can Launch a “Career for Life”

We’re also excited about the recruiting edge an ESOP structure will provide. While we have been named one of the best places to work in Cincinnati year after year, offering employees an ownership stake is a perk on an entirely different level. Among other benefits, ESOPs have the potential to help employees build retirement account balances that are larger on average than employees in traditional businesses, according to the National Center for Employee Ownership.

“An employee ownership structure will help us attract and retain talent, especially as the accounting industry faces ongoing recruitment challenges,” said Diane Glover, Director of People and Business Development.

As a firm committed to providing a place where employees can find a “career for life,” becoming an ESOP was a perfect fit.

Firm Leadership to Remain in Place

As part of the transition, the firm’s current management structure will remain in place, with Kirsch, who founded the firm in 1991, continuing to serve clients and serving on the leadership team, and Abner serving as CEO. Janis Bergeron will continue as COO. Glover and Sue Schloemer will continue in their role as directors.

ESOP Facts

An employee stock ownership plan (ESOP) gives employees ownership in the company through a tax-qualified retirement plan. Employees earn shares over time and no out-of-pocket contribution is required by employees. All other employee compensation and benefits remain in place.

According to the most recent estimate of the National Center for Employee Ownership (NCEO), there are employee stock ownership plans (ESOPs) at 6,322 companies in the U.S. There are 6.1 million employers in the U.S. according to U.S. Census Bureau data. The ESOP Association, an employee ownership advocacy and educational organization, reports 297 ESOPs in Ohio out of 252,000 total employers.

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