Quick summary:
- Lone Star Communications is now proudly employee-owned through an ESOP. This transformative move gives employees a direct stake in the company’s success and helps preserve its leadership and values for the long term.
- Lone Star has grown into a trusted industry leader with 285 employees. It continues to make a meaningful impact across healthcare, education, and commercial industries by focusing on safety, communication, and service.
- Employee empowerment is central to Lone Star’s culture and future. Through smart management and technology, the company fosters leadership at every level and ensures employees can make a real impact—and benefit from it.
- Rather than being acquired, Lone Star chose to expand strategically on its own terms. With multiple acquisitions and a focus on schools and hospitals, the company is poised to double in size and grow its national influence in the coming decade.
The next chapter for Lone Star Communications is an exciting one. Now operating under an Employee Stock Ownership Plan (ESOP), the company is proud to be employee-owned, giving team members a direct stake in its continued success. But before looking ahead to what’s next, it’s essential to look back. Reflecting on Lone Star Communication’s journey reveals just how far the company has come and the foundation that makes its future so promising.
Thirty-four years ago, founder and CEO Ray Bailey began his business journey in the rapidly growing Dallas–Fort Worth market. Surrounded by an abundance of schools and hospitals, Lone Star Communications quickly established itself as a trusted and emerging leader in the region. Our story begins even before the official founding. Long before the company existed, Bailey was already laying the groundwork for the future. As a district manager at Rauland, a provider of integrated communication and safety solutions for healthcare and education, Bailey spent five years deeply immersed in the industry, steadily shaping a vision for the business he hoped to build.
While working in Alaska, he took a hands-on approach to learning, closely observing the habits and strategies of successful distributors. “I talked to each one of them about what made them successful—what they did, and just as importantly, what they didn’t do,” he recalls. “I learned from that experience long before I ever picked up a business book. That’s when I wrote my first business plan. That was the beginning, back in 1991.”
Now, Lone Star Communications has grown to employ 285 employees and is improving the lives and safety of millions of people in the healthcare, education, and commercial industries.
Empowering Employees, Strengthening the Business
At Lone Star Communications, employees are encouraged to build, create, and become natural leaders. Against a micromanagement style, Bailey has developed a framework that equips employees with the right tools. Whether through effective business management or supportive technology, they are enabled to actively contribute and feel a genuine sense of ownership. It empowers individuals to make meaningful impacts on customer satisfaction, team success, and overall organizational well-being. Not many companies decide to shift into ESOP, so why is now the right time?
“The thing that I didn’t want to have happen was to see Lone Star change and to see its upper level of management that built this business leave the company and go off and do other things,” said Bailey. “Lone Star has had a lot of success, and I wanted all of that to stay in place as long as possible by using the same people who helped build the business. An ESOP puts us in that position to be able to do that.”
For Lone Star Communications, ESOP creates a cascading situation where the next generation can build on the values, quality programs, and excellent customer base, with plenty of benefits.
A Legacy of Purpose, A Future of Promise
For many companies, being acquired for potential growth must be considered, and Lone Star Communications was no exception. A choice had to be made, and a bold one at that. Instead of being acquired, Lone Star Communications decided to be the acquirer. In 2015, the Houston office was acquired, in 2017, the Arkansas office, and in 2018-2019, the Central Texas office.
Since that time, some software companies and others have also been added. Now, the idea of selling is history.
“When we went out to add businesses, we decided that we were going to stay at our scope of work, which was schools and hospitals,” said Bailey. “So when we looked for them, we tried to combine companies that fit exactly what we were doing. Being able to bring those into the fold and work in an environment that we’re used to gave us a huge advantage.”
Now, Lone Star Communications has the opportunity to expand its nationwide footprint beyond its known Texas footprint. In ten years, Bailey hopes the company stays true to its roots and remains comparable to its current state, but believes it will at least double in size. He also knows it will remain loyal to being one of the largest Rauland distributors, continuing to transform the way hospitals and educational facilities, specifically schools, operate.
“Lone Star has gotten bigger than I ever expected it to get, and that is past my wildest dreams,” said Bailey. Lone Star Communications stands as a testament to the power of vision, values, and people. What began as one leader’s dream has grown into a purpose-driven organization committed to innovation, integrity, and impact. With a firm foundation, employee ownership, and a culture of continuous growth, Lone Star is well-positioned to thrive in a rapidly evolving industry, ensuring safer environments and stronger communities for generations to come.
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Ray Bailey, founder and CEO of Lone Star Communications, brings decades of experience in healthcare communications to the company’s foundation. Before launching Lone Star in 1991, Bailey spent five years as a district manager at Rauland, a leading provider of integrated communication and safety solutions for healthcare and education. Thirty-four years ago, Bailey drafted the mission statement that continues to be Lone Star’s guiding light: “We will deliver the right products to our customers on time, the first time, every time, with no exceptions.” He has served on the board of directors for the National Systems Contractors Association since 2003 and is an accomplished pilot, having flown over 200 Angel flights.