Employees Now Own Point B

Our employees are rewarded with a 100 percent investment in the game. And we, as founders, get to continue an active role assisting in the development of Point B's leadership and building upon our award-winning culture."

Jenkins says the firm's mission has always been to create an enduring firm for the benefit of its people. So, when the leaders thought of all the equity transfers options, employee ownership was the "only one that seemed like it truly created an enduring firm for the benefit of our people. I always envisioned that someday we'd be employee owned," he says. "It's thrilling and gratifying to see it happen."

For his part, CEO Mike Pongon, calls the move a "game-changer" for Point B.

"There are other firms out there that have done employee ownership as part of their portfolio, but the things that we've done up to this point around culture and employee satisfaction are pretty compelling, and I think now those are amplified even more," Pongon says.

"That's why this is a game changer for us. The consulting industry is a competitive place where the most talented workers are in the enviable position of having plenty of choices about where they deploy their talent, and the move to 100 percent employee ownership gives our current and future highly-talented employees a share in the growth and development of this firm. It really solidifies our commitment to growth and the mission, culture and values that make Point B the place to be."

Jenkins says Point B's move raises the bar for the firm and for the entire profession. "There's a lot of good people in the profession, but there's a lot more people chasing them," he says. "Now, every last person has a stake in our company. I think the ESOP companies will begin to put more and more pressure on the other firms in the profession."

Pongon says it's about believing that Point B can have its cake and eat it, too.

"We want to create a company in this industry that's very different from everyone else by putting the needs of our associates first," Pongon says. "By doing that, it extends out to the clients and into the communities we serve."

The transaction will be funded through significant tax and other savings associated with the change in ownership structure, and Point B Inc. will benefit from an increase in cash flow as a result—about $7 million a year in cash flow to invest in people, to develop new markets, to open new offices to create new capabilities, Pongon says.

To that end, Pongon says the firm has its eyes set on opening a new office probably this year since it's making good traction in the marketplace in seed markets in Texas and Georgia. That would be Point B's eighth location. The firm is also looking to add about 100 employees to the 500 it has currently, he says.

"Point B will have a more national footprint in the next two or three years," Pongon says. "I suspect we'll have 12 offices that cover the footprint of the United States."

But Jenkins is quick to point out that "Point B has never been about growing for growth's sake. We're not nearly as concerned with top-line revenue and headcount growth as some others," he says. "We're trying to run a profitable business for the benefit of our people."

There's another aspect of the 100 percent ownership that shouldn't be overlooked, Pongon says.

"This will help us build a wealth-creation vehicle for our employees," he says. "In the consulting industry, there is a tendency for the equity partners to make out big and for everyone else at the firm to just have a job. Going this route creates a retirement vehicle that is exciting for our people. This move, internally, has just lit the entire firm on fire," Pongon says. "People are psyched about it, and when you really look at all it offers our people, our firm and our clients, why wouldn't they be?"