Turning Employee-Owned Keeps Love Communications’ Good Name and Great Culture Intact
Love Communications, a full-service marketing and advertising agency based in Salt Lake City, Utah, has a unique culture.
Focused on tourism, cause-marketing, entertainment and health sciences, Love is an agency with heart. A trip to the Salt Lake City offices can feel more like a visit to your most eccentric and energetic friend’s house, who’s happy to see you and help you with whatever you need.
As the agency neared its 25th year of operation, its three longtime partners; Tom Love, Preston Wood and Alan Reighard,decided it was time to determine a succession plan. Doing so presented them with three options. One, they could sell to another agency. Two, they could sell to a private equity firm. Or three, they could create an Employee Stock Ownership Program (ESOP).
The agency’s Chief Financial Officer and Managing Director, Amber Banks, explains that the three partners had two goals in mind for the agency’s succession. First and foremost, they wanted to keep the good Love name intact. Second, they wanted to reward the employees who had made Love one of Utah’s best agencies, with a growing reach across the country.
After watching several other local agencies sell in a variety of ways then dissolve within a year or two, it was clear how best to proceed. Creating an ESOP would be the way to go.
But it wasn’t a process for the faint of heart. Love first looked into an ESOP transaction with another firm in a deal that ultimately wouldn’t make financial sense. For a moment, it seemed like an ESOP wouldn’t be in the cards for agency.
That, however, changed when Love was introduced to Susan Scherbel and Bellview Associates.
“They did a presentation for us, and it was like, ‘Oh, wow, this really can accomplish our goals,’” Banks recalls. “Susan was able to customize a plan that addressed Love’s specific goals. She articulated the tax advantages and many other benefits that made financial sense for the outgoing partners, all while preserving Love’s amazing culture.”
Banks believes Love’s new standing has made its signature, charming culture even stronger than ever. The employees, who call themselves “Lovers,” are even more invested in the agency.
“Every single person at Love contributes to our success and the share value,” Banks says. “Because everybody has an individual stake in it, I feel they work with even more passion and enthusiasm. It’s awesome.”
The partners have also been thrilled with the results. They can check the boxes on both of their goals; preserving the Love reputation, and showing gratitude to the employees who have made the agency what it is today.
The Lovers can focus on making each project with, well, love, knowing that the agency’s future is in good shape. Banks feels the ESOP transaction has continued to pay off dividends to attract new, creative minds to drive Love forward.
“Culture is very important to Love, and when we explain that we’re an ESOP, it goes beyond just saying the word ‘culture.’ We put our money where our mouth is,” she says. “It’s a really strong recruiting tool.”
Safe to say, Love loves being employee-owned.