26 SEP 2024 / PEOPLE UPDATES

Kirsch CPA Group Transitions to Employee Ownership with ESOP Implementation

- MYCPE ONE Insights Team

Summary

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Kirsch CPA Group, an accounting firm based in Hamilton, Ohio, is transitioning to a fully employee-owned structure through an Employee Stock Ownership Plan (ESOP), with the aim to reward their team's contributions and maintain quality services long-term. Leaders at the firm believe that the ESOP structure will enhance their ability to attract and retain talent, foster a culture of shared success, assure their commitment to clients, and sustain long-term company growth.

October 1, 2024 – Kirsch CPA Group, based in Hamilton, Ohio, with FY23 net revenue of $9.3 million, has announced its transition to a fully employee-owned firm through the establishment of an Employee Stock Ownership Plan (ESOP). This strategic decision underscores the firm’s commitment to its employees, clients, and the long-term sustainability of its operations.

The leadership at Kirsch CPA Group views this ownership transition as a way to recognize and reward the contributions of their dedicated team. “This transition to employee ownership allows us to maintain local decision-making and the exceptional level of service our clients have come to expect,” stated John Kirsch, the firm’s founder.

CEO Pete Abner emphasized the significance of this transition for the firm’s future. “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,” he explained.

Empowering Employees for Shared Success

The firm aims to foster a culture of shared success and long-term growth for both employees and clients. “Through the ESOP, we’re empowering our team to have a direct stake in the firm’s success,” said John Kirsch. He expressed confidence that this ownership model would drive innovation, maintain exceptional client service, and foster a collaborative work environment.

Diane Glover, Director of People and Business Development, added that the ESOP structure will enhance the firm’s ability to attract and retain talent amid ongoing recruitment challenges in the accounting industry. “The firm is poised to continue its strong growth. An employee ownership structure will help us attract and retain talent,” she stated.

Commitment to Client Service and Growth

Kirsch CPA Group has a long-standing commitment to providing personalized, high-quality accounting, tax, and advisory services to small and mid-sized businesses in the Tri-State area. The firm’s management structure will remain intact following the transition, with Kirsch continuing to serve clients and being part of the leadership team. Abner will serve as CEO, and Janis Bergeron will continue as COO, alongside Glover and Sue Schloemer in their director roles.

Understanding the ESOP Model

An Employee Stock Ownership Plan (ESOP) allows employees to earn shares in the company over time without any out-of-pocket contribution required. This plan is designed to enhance employee retirement savings while maintaining the firm's existing compensation and benefits structures. According to the National Center for Employee Ownership, companies with ESOPs often report higher employee retirement account balances compared to those in traditional businesses.

Kirsch CPA Group's transition to an ESOP is seen as a major step forward, reinforcing its commitment to fostering a culture of collaboration and success that benefits both employees and clients. As they embark on this new chapter, the firm remains dedicated to being a great place for employees to build a "career for life."

Until next time…

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Kirsch CPA Group Transitions to Employee Ownership with ESOP Implementation

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