February 15, 2017

Arbor Assays Becomes Employee-Owned Through a Perpetual Trust

Executive Director

On January 1, 2017, Arbor Assays, a company that designs and manufactures tools for the life-science industry, became an employee-owned company through the use of a "perpetual trust." The owners sold their interests to the employee trust and provided seller financing. Arbor Assays now has 11 employee owners. While a relatively new technique in the United States, because the trust laws of many states limit the time period during which a non-charitable purpose trust can be established, this arrangement is more common in Great Britain, where "perpetual trusts" are widely recognized. (For more on perpetual trusts, see the forthcoming March-April NCEO newsletter or attend our April 2017 annual conference.)