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Legal Staffing Firms Go ESOP

September 13 2011

Mestel & Co. and Hire Counsel, national legal placement and temporary attorney staffing and review management firms, announced today that they have sold their stock to the HCMC Legal Inc. Employee Stock Ownership Plan (ESOP). The ESOP will be extended to all qualified employees of the two companies as well as to the attorneys who work on a contract basis for Hire Counsel.

Mestel & Company and Hire Counsel, both founded by attorney Lynn Mestel, are the first legal recruiting and staffing agencies to be employee-owned, the companies reported.

“This program enables us to recognize the outstanding work and dedication of our full-time recruiters and administrative staff as well as the thousands of professional temporary attorneys who work in corporations and law firms across America on our behalf,” said Mestel. “It also sends a strong signal to our clients that we are deeply committed to our core values of teamwork, integrity and professionalism and ensures a sustainable strategy to maintain our commitment for years to come.”

Mestel will continue as a major investor and president of the companies. Hire Counsel COO Willa Fawer and Mestel & Co. COO Avery Ellis and Executive Director Sam Roberts, also will remain with the organization, as will other key managers.

The private investment firm Long Point Capital helped finance the transaction.

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Senior Staff Member, National Center for Employee Ownership

Corey Rosen, 09/14/2011 02:24 pm

ESOPs have become very popular in the staffing industry, including such recent major transactions as Penmac and Burnett Staffing.

These plans offer owners of closely held companies substantial tax advantages, and ESOP companies, overall, outperform their peers. The companies also get significant tax advantages.

You can learn more about ESOPs and how they work at the Web site of the nonprofit National Center for Employee Ownership, www.nceo.org.


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