We congratulate our client, SimVentions, on becoming a 100% employee owned company. SimVentions explored a range of strategic alternatives and selected an employee stock ownership plan (ESOP) as the optimum transaction structure for the company and its employees. The McLean Group’s Defense & Government practice served as the exclusive transaction advisor to SimVentions.

Founded in 2000 and headquartered in Fredericksburg, VA, SimVentions is a provider of advanced, highly technical engineering solutions and services to the Department of Defense, with a focus on the Navy customer. The Company’s solutions combine unique operational and domain knowledge with significant technical expertise in the areas of systems engineering, software engineering, cybersecurity engineering, modeling and simulation, project management, and professional training. SimVentions’ entrenched relationship with the Navy, including its strategic presence at the Naval Surface Warfare Center Dahlgren Division (NSWCDD) and at the Naval Information Warfare Center (NIWC) Atlantic, positions the Company to capitalize on new, high-priority projects that have lasting requirements.

“Our corporate motto is Your Success Is Our Honor and we strive to not only live this out regarding our customers, but also regarding how SimVentions leadership cares for its employees; we see no better way to convey that to our employees than through the establishment of an ESOP” said Larry Root, CEO of SimVentions.

Alternative transaction structures, such as ESOPs, are common in the Defense and Government market. Whether an ESOP is the right solution for a specific company depends on the characteristics of that company and the situation. An ESOPs’ potential strategic benefits to federal contractors, include:

• Generally favorable reception from government customers;
• Strong employee retention and a powerful recruitment tool;
• Often less disruptive process than traditional M&A processes;
• Possible economic benefits from incorporating ESOP expenses in rate structure.

SimVentions views its ESOP transaction as a powerful tool for maintaining and growing its workforce. With five offices and over 300 employees in Virginia and Washington, DC SimVentions is well positioned for future growth. SimVentions’ ESOP Plan and Transition Team included: Hirschler Law, The McLean Group, Atlantic Union Bank, Argent Trust, and Blue Ridge ESOP Associates.

About The McLean Group

The McLean Group is a leading investment bank that provides objective strategic and financial advice on mergers and acquisitions, debt and equity recapitalizations, ESOPs and business valuations. The McLean Group applies comprehensive industry knowledge, extensive transactional expertise, real-time understanding of industry-specific valuation drivers, and senior-level attention to every client engagement it undertakes.