Southern Building Group Transitions to Employee Ownership Through ESOP

Transition Facilitated by Viking Mergers & Acquisitions 

NASHVILLE, Tenn., Dec. 12, 2025 /PRNewswire/ -- Southern Building Group (SBG), a Murfreesboro, Tennessee-based construction firm, has successfully transitioned to employee ownership through the establishment of an Employee Stock Ownership Plan (ESOP), marking a major milestone in the company's 15-year history.

Founded by lifelong friends John Elliott and Chad Davenport, SBG was built on shared values and local roots. The pair grew up together in McMinnville, Tenn., where Elliott's father owned a construction company. After working in both the family business and larger construction firms, Elliott and Davenport launched SBG.

As the owners began exploring succession options, they determined that a traditional third-party sale was not the right fit for the business or its people. Instead, they chose an ESOP structure, allowing an institutional trustee to hold shares on behalf of all employees, similar to a retirement plan.

"We are so excited to offer this opportunity to our employees," Elliott said. "This company would not exist without them, and they deserve ownership. This transaction also ensures that SBG will exist for years to come."

Through the ESOP, all SBG employees became company owners immediately. Day-to-day operations and leadership will remain unchanged in the near term, with current management continuing to lead the business while developing future leaders internally over time.

Reed Kelly and Kyle Kerrigan of Viking Mergers & Acquisitions guided the succession planning and transaction execution.

"This structure allowed the founders to achieve their goals while preserving the culture and continuity of the business," said Kelly. "We suggested an ESOP, and they loved the idea. Viking partnered with EFS consultants out of Memphis as an ESOP advisor."

With the ESOP in place, Southern Building Group enters its next chapter with a structure designed for continuity, shared success, and long-term growth.

About Viking Mergers and Acquisitions in Nashville
Viking M&A of Nashville provides merger and acquisition services to small and middle-market business owners. As part of Viking M&A's multi-state network, the Nashville office is backed by one of the largest business brokerage firms in the southeast U.S. Since 1996, Viking has successfully sold over 900 businesses with an 85% close rate, at an average of 96% of the market value.

Visit https://www.vikingmergers.com/market/business-brokers-nashville-tn/ to request a free confidential business valuation or to get more information. 

SOURCE Viking Mergers & Acquisitions