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Arbor Assays

Wishing to pass the company to its employees, the owners of Arbor Assays, a life-sciences company based in Ann Arbor, partnered with C2BE to develop the legal framework for the sale to employees. The former owners continue to be fully involved in the business which will now be managed as an employee-owned business. Wanting to ensure that remained an independent and successful business, Dr. Russell Hart, founder and managing partner was impressed with how the perpetual trust model can achieve this. This method of employee ownership maintains the company perpetually for the benefit of its employees, while eliminating the need for the company to repurchase shares from terminating employees.  Financially, the employees will benefit because, in addition to their basic compensation, the trust will annually allocate revenue not needed for company operations or future investment, to participating employees.  It was a difference that proved the right decision, according to employee-representative, Bobbi O’Hara; “Making the decision to transition from private ownership to perpetual trust speaks volumes about the faith in our collective competencies and the importance in taking care of each other, not just as coworkers, but as a community with a common goal.  As employees, we are excited to see how we'll shape our shared responsibility and direct this opportunity to have an impact for the benefit of us all."