Holland & Hart represented Consumer Direct Holdings, Inc. (CDH), a provider of care and support services that helps people remain independent in their homes and communities, in becoming partially employee-owned through the formation of an Employee Ownership Trust (EOT). CDH is now Certified Employee Owned, with more than 30% of the company dedicated to employee ownership.
The new EOT ownership model honors caregivers’ essential contributions and roles as trusted partners in CDH’s future. Through the EOT, eligible caregivers will join administrative employees to share in CDH’s success through a profit-sharing model. The EOT also secures long-term organizational sustainability through a thoughtful ownership transition that strengthens CDH’s position in an increasingly competitive care landscape.
Prior to the EOT transaction, Holland & Hart served as outside legal counsel to CDH on a range of employee benefits and tax issues, including exploring a variety of employee ownership models. The EOT transaction involved complex restructuring steps, ownership and succession issues, and balancing the needs of multiple stakeholders and shareholders. Sophisticated tax issues, particularly estate and gift tax and wealth transfer considerations, were also in play. Now that the EOT is in place, the team is equally committed to the complex yet exciting issues encountered in implementing this transformational ownership model.
For more information, please see CDH's press release.
Holland & Hart’s transactional team was led by partner Beth Nedrow, and included assistance from Todd Criger, Cris Wilcoxon, Kevin Selzer, Conrad Kranz, Peter Perla, and Lori Argall, among others. Holland & Hart collaborated with Common Trust, a consultant that facilitates shared ownership structures for business owners and employees, as well as multiple other interested parties and their advisors.
Holland & Hart’s Employee Benefits and Executive Compensation team works with founders and owners who invest decades building a business to leave their legacy in the right hands. The specialized team brings decades of experience advising on traditional aspects of Employee Stock Ownership Plans, and the emergence of alternative vehicles including Employee Owned Trusts (EOTs), Perpetual Purpose Trusts (PPTs), and PE-backed ESOP co-investments.