Business View Magazine - July 2024

a clear succession plan. By transitioning to an employee-owned organization, these companies can maintain their quality and retain long-term staff while providing them with the wealth generation benefits of ownership. Hockenberger believes that employee ownership creates a unique level of care and dedication.“I think there’s a level of care that an employee ownership organization brings that you may not get with just a private financial buyer,” she says. This care translates into a more robust, cohesive culture where employees are deeply invested in the company’s success and enduring legacy. EXPANDING HORIZONS AND SUSTAINING GROWTH Parman Holdings continues to build on its foundation with strategic revenue growth and capital infrastructure initiatives. CEO Hockenberger sheds light on the complexities and rewards of the employee ownership model. “The employee ownership model is not for the faint of heart because there is a lot of work that goes into it,” she admits. Significant expenses are associated with maintaining this structure, including costs for third-party counsel, trust management, and auditing. These are expenses a privately owned company might avoid. However, she believes that the dedication and innovation of employee-owners more than compensate for these costs. “We’ve done so much more here with fewer people involved because the people, who are owners, really want to work so much harder, and they bring ideas to the table,” she says. This drive and commitment have been instrumental in Parman Holdings’ success, now in its ninth year of employee ownership. Looking ahead, the company is on the verge of a significant milestone. “Next year is our 10th year. Through this process, we’ve relieved some of the original ESOP debt we took nine years ago,” Hockenberger explains. With a significant portion of this debt set to be cleared by the ten-year mark, Parman Holdings is poised to pursue further diversification. The company’s strategy for growth involves adding new operating companies to its portfolio. “Our goal is to continue to diversify. We want to add another operating company to stand alongside Parman Energy Group and Parman Tractor and Equipment,” she reveals. By expanding the portfolio, Parman Holdings aims to enhance share value and provide additional revenue streams for its employee-owners while spreading the risks associated with industry- specific and seasonal fluctuations. This growth strategy isn’t just forward-looking; it also builds on a solid foundation of recent successes. “Since the ESOP took root in the company, we’ve had major revenue and gross profit growth,”Hockenberger highlights. Despite navigating some of the most challenging seasons in the company’s history, it has survived and thrived, demonstrating the resilience and effectiveness of the employee-owned model. 105 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07 PARMAN HOLDINGS