Innovation

The innovation described by Fulton Equity centers around ethical acquisition, growth, and sales of lower-middle market businesses while also intentionally planning growth strategies and ownership transitions that benefit employees and the local community. Rather than acting as a passive investor, the firm focuses on controlling investments, allowing it to guide strategic decisions and influence long-term outcomes. Founded to serve as a vehicle for meaningful investment, Fulton Equity seeks to strengthen the financial position of employees and eventually transition them to a new ownership structure that maintains stability, working with previous ownership after acquisition and future ownership after a sale.

A notable example is the sale of LEFCO to Evergreen Cooperatives, which converted the company into an employee-owned organization. Through this approach, workers gain a meaningful stake in the businesses where they work, allowing them to share in the value that the company creates. This model represents an innovative approach to private equity due to its integration of traditional value creation with employee  ownership and community retention in mind. Private equity is often notorious for its tendency to strip acquired companies down to their parts, merge what is valuable to a larger corporation, and leave what is not as valuable to decay. This extracts value from local communities rather than giving back to them while removing jobs and local businesses at the same time. By prioritizing buyers such as employee stock ownership plans (ESOPs), cooperatives, local individuals, or other mission-aligned organizations, Fulton Equity attempts to ensure that the long-term benefits of business growth extend beyond investors.

Inspiration

Larry Fulton, the CEO and founder of Fulton Equity, was initially inspired by building wealth for his family, who he had previously witnessed undergo financial hardship. In the process, he fell in love with the work that he does. It was noted by another individual during the interview that, "if he won the lottery and never had to work again, he would continue doing the same thing regardless. It gives him purpose". Mr. Fulton wishes to see the community around him prosper rather than to see the talent and value generated around him be uprooted and removed, consolidated into a small number of large corporations that do little, if anything, for their communities.

Mr. Fulton lives staunchly by his motto: "If you do something, do it the right way". This mantra propagates through every facet of his life, through the way he has raised his children to the attitude he takes when dealing with business decisions. He takes care to get to know each of the lives he has touched through the employment opportunities he provides, understanding that his actions impact the lives of many people.

Overall impact

Overall, Fulton Equity helps to cultivate wealth within the local community, fostering the growth of economic and human capital in areas that have historically seen job loss and a decrease in economic quality. Not only does Fulton Equity help in this regard by directly creating jobs, but it ensures the stabilization and future growth of these businesses even after a sale is made by working with the buyer to guarantee a smooth transition. Additionally, as was previously mentioned, steps are taken to directly benefit the workers themselves wherever possible. 

Keeping local businesses local both directly and indirectly benefits the community through access to resources, generation of tax dollars, and employment. 

Business benefit

Mr. Fulton connects with his community through the businesses he has invested in and through the education he provides, fostering recognition as a force for good. The company culture and stability leads to high rates of employee wellbeing, high productivity, stronger commitment to company performance, and low turnover. From Fulton Equity's perspective, this helps increase the value of the company during ownership and prior to exit. 

Additionally, because Fulton Equity focuses on maintaining businesses locally rather than spreading a portfolio around the United States, this avoids disruptive restructuring. Thus, before acquisition and after sale, there are smoother transitions in leadership and stronger bonds between management and workers. This stability reduces operational risk and makes the company more attractive to future buyers.

Social and environmental benefit

The model employed by Fulton Equity contributes to broader social and economic goals by supporting stable employment, promoting employee ownership, and strengthening regional economies. By aligning investment success with community benefit rather than short-term financial gain, Fulton Equity demonstrates how private investment strategies can support more inclusive and sustainable economic development. Rather than rapidly restructuring, merging, or relocating businesses after acquisition, the firm focuses on maintaining operations and relations in Northeast Ohio and building long-term value within the companies it acquires, lasting long after their time within the firm's portfolio. This approach helps perserve local jobs, sustain community tax bases, and create opportunities for employees to participate in the financial success of the businesses they help operate.

Mr. Fulton also uses the opportunities provided to him through Fulton Equity to pass on his knowledge to the future generations. Partnering with universities and training seminars, especially often speaking at Case Western Reserve University, he is passionate about teaching about entrepreneurship through acquisition and sustainable business practices within the field.

Interview

Larry Fulton, Founder, CEO