Hermetic Switch, Inc.
ATI Capital Group, Inc. represented the majority shareholders of Hermetic Switch, Inc. in a combination equity recapitalization-Employee Stock Ownership Plan. Hermetic Switch is the leader in the engineering, implementation and design of the world’s smallest hermetically sealed magnetic switches. The Company’s products can be found in hearing aids, pacemakers, and high tech. equipment used by the Department of Defense.
The recap and sale of stock to the Company’s newly created Employee Stock Ownership Plan and Trust represented a 44% transaction of the then outstanding shares. This transaction allowed the shareholders to sell a minority interest in the Company for a controlling interest per share price while remaining in effective control over the board of directors. Since the selling shareholders are several years from retirement, they will continue to work in the Company as officers with their compensation now directly tied to the profitability of the Company. It gives the employees a substantial benefit going forward and it gives the owners, managers, and employees a common incentive toward improved productivity, profitability and ultimately a higher share value. Last but certainly not least, we have created 257 new first time employee owners.
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