M&A Advisory

Regional Construction Company Seeks Exit Through ESOP

Challenge:

The client, a regional construction company with an aging ownership team, sought to transition ownership to a second generation through an employee stock ownership plan (ESOP). The current owners needed to understand the valuation and feasibility of an ESOP within the company, as well as the company’s ability to repay the debt and the tax implications for exiting partners.

Solution:

A feasibility study for the ESOP was completed, including a valuation and financial planning and analysis of the company’s operations and ability to repay the ESOP financing.

  • Worked with management to identify and groom an internal resource to begin actively assuming operational leadership.
  • Collaborated with the ESOP’s trustee and legal teams through weekly meetings to make sure the transaction stayed on task and on time.
  • Understanding the volatility of the construction industry and the current market, timed the ESOP transaction to be able to appropriately finance the ESOP.

Result:

Working with the ESOP trustee and several legal teams, the client successfully completed an ESOP transaction.

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