BRIGHT CLIENT P . GRAHAM DUNN
PRESERVING THE PAST ... AND THE FUTURE
Walk in to just about any T . J . Maxx , Hobby Lobby , or Cracker Barrel in the U . S ., and you ’ ll likely find home decor and gifts from none other than P . Graham Dunn , the Dalton , Ohio , company known for its distinctive red roof and production of high-quality inspirational and artistic products . Today , the company ’ s headquarters and 266,000 sq . ft . manufacturing and distribution center is found along US Route 30 in the heart of Ohio ’ s Amish Country .
Born out of a love of woodworking and design , P . Graham Dunn was founded by Peter ( Graham ) Dunn , and his wife , LeAnna , in 1976 . Fueled by word of mouth , the hobby soon blossomed into a full-scale business rooted in family values , customer satisfaction , and treating employees like family . Today , P . Graham Dunn , an employeeowned enterprise , is regarded as one of the largest American inspirational art , gift , and home decor manufacturers in the U . S .
Family Business Goes ESOP
As a family-owned business , the Dunn family worked to extend their close-knit rapport to the company ’ s employees , which is why , back in 2018 , upon deciding it was time to exit their family business after 40 years , Peter wanted to choose an exit and succession strategy that would maintain his family ’ s values and the company culture he worked so hard to build .
In an effort to reach their desired end goal , the Dunn family brought in the late Tim McDaniel , former principal and director of business valuations at Rea & Associates , to help the family assess and understand their entire menu of exit planning options . From there they chose the option that best represented their personal ideals and company culture . For P . Graham Dunn , an ESOP , or an Employee Stock Ownership Program , by which the company is ultimately owned by its employees , became the ideal solution .
Why Choose An ESOP ?
The home decor and gifts manufacturing industry is inundated with importers , which comprise nearly 95 percent of P . Graham Dunn ’ s competition . The Dunn family determined that if the business were to be sold to a competitor , it would be likely that the business culture they worked so hard to build would be completely lost to an overseas manufacturer . Peter wanted to ensure that his passion for the company and the local community would be preserved , and that P . Graham Dunn would continue to produce American-made products .
The Transition
As you might imagine , transitioning ownership of one ’ s company is never an easy task ; and ESOPs tend to be more complicated . This is why it ’ s always important to have a team of trusted advisors in your court . In this case , P . Graham Dunn ’ s team consisted of key company leaders : Rea advisors , Brian Kempf , Andrew Geiser , and Dustin Raber ; and legal representation by Critchfield , Critchfield & Johnston ’ s Chris Pycraft .
With any large business transaction comes a laundry list of considerations and decisions that need to be made . One of the major decisions with P . Graham Dunn ’ s ESOP transition was the division of property , which resulted in major tax considerations . Rea tax experts were called upon to provide guidance through these unchartered waters .
“ A big challenge we faced through this change to an ESOP was that we didn ’ t understand the process . We had never done this before ,” said Patrick Helmuth , CEO of P . Graham Dunn . “ We didn ’ t always know where we were in the process , but internally we knew it was going to work . It took some perseverance to work through each step of the process , and we ’ re grateful to our business advisors for helping us along the way .”
After overcoming many of the financial matters of the business transition , the company set to work forming its first-ever board of directors and began shaping its leadership team . Peter became an advisor and Patrick became CEO . Additional key management leaders include Robert Shetler , long-time vice president of manufacturing ; Franklin Geiser , vice president of technology ; Brian Bossman , vice president of sales ; and Anthony Burdette , vice president of marketing and product development .
By September 2019 , the transition to an ESOP was complete , all 300 + employees were retained , and those eligible ( 21 years or older ) became owners .
“ One of the goals of this transition was that our employees wouldn ’ t feel a huge difference , and that a sense of normalcy – business as usual – continued ,” said Patrick . “ We believe we achieved this goal , as our hard-working employees continued to work hard and many began to have more of an ownership mentality .”
Skin In The Game : Good Times & Bad
The COVID crisis came to America six months into P . Graham Dunn ’ s new ESOP structure and , like many businesses , the
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