John Newland from JOMA Construction needed an exit that would prevent culture disruption, offered financing, and guaranteed his team would be taken care of. Plus, they wanted to keep building eudaimonia.

In our conversation, John and Mackenzie share:

1. The journey from flipping houses to a 30-owner ESOP success story.
2. Why transparent communication from day one created trust throughout the transition
3. How seller financing aligned long-term interests between owner and employees and avoided the “us vs them” mentality

Click here to watch this episode on the Zolidar Youtube Channel.

MAILBAG | GET IN TOUCH WITH US

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ZOLIDAR LINKS:

• Home Page: https://zolidar.com
• Podcast: https://zolidar.com/podcast
• Blog: https://zolidar.com/blog

ZOLIDAR FEATURES

1. Day Zero Guide: https://zolidar.com/exit-plan-guide
2. Aha! Planner: https://zolidar.com/exit-financial-plan
3. Zolid AI: https://zolidar.com/dashboard?zolidai=true

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DEEP DIVE ANALYSIS

Strategic Transition Planning

1. Eight-month timeline from decision to closing.
2. Core values guided decision-making: teamwork, continuous improvement, do the right thing, and WOW customer service.

Creative Deal Structure

1. 100% seller financing avoided traditional banking constraints.
2. Structure aligned interests between seller and employees
3. Owner remained engaged post-transition
4. Demonstrated how smaller companies can make ESOP transitions work

Trust-Based Implementation

• CFO represented employee interests alongside trustee.
• Nine rounds of offer/counter-offer negotiations.
• Transparent communication from initial announcement.
• Ongoing education and engagement strategy.

CHAPTERS

00:00 Introduction to Joma Construction and ESOPs
02:55 The Journey to Employee Ownership
06:12 Core Values and Company Culture
08:54 The Role of Advisors and Trustees
11:53 Communication During the Transition
14:58 Understanding the ESOP Process
18:08 Negotiation and Complexity of ESOP Transactions
20:57 Regulatory Oversight and Employee Protection
23:53 The Importance of a Clear Roadmap
32:34 Key Documents in Business Transactions
35:33 Understanding Financial Feasibility
37:00 The Role of Financing in Employee Ownership
40:07 Liability and Employee Ownership
42:42 Navigating Bonding and Insurance Challenges
44:26 Advice for Small Business Owners
48:03 Aha Moments in the ESOP Process
50:32 Reflections on Employee Ownership
52:35 Post-Transaction Experiences
56:07 Future Planning and Goals
59:17 Closing Thoughts on Employee Ownership

CONNECT WITH JOMA CONSTRUCTION:

• Website: https://jomaconstruction.com/esop
• LinkedIn: https://www.linkedin.com/company/jomaconstruction/

REFERENCED IN THIS EPISODE:

• John Newland (Co-founder, CEO:https://zolidar.com/grid/person/john-newland--3ZSmMw)
• Mackenzie Gallagher (CMO: https://zolidar.com/community/person/mackenzie-gallagher-cmo-at-joma-construction-xSIBs5)
• Michelle Griffith (CFO: https://zolidar.com/grid/person/michelle-griffith--7x9uzi)
• Steve Smith (ESOP Advisor) (Steve can be reached via the JOMA contact form here: https://jomaconstruction.com/esop)

Click here to view the episode transcript.

© Copyright 2025 Zolidar, Inc.

‍Note: This podcast is not investment advice, and is intended for informational and entertainment purposes only. The views expressed in this episode are solely those of the guest(s) and do not necessarily reflect the opinions of the host or Zolidar.

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