Sales of ESOP companies, class action lawsuits, Department of Labor (DOL) investigations, etc. mandate that ESOP companies with significant ESOP-related loan portfolios are structured to operate to minimize the possibility of an unwanted acquisition that will terminate the banking relationship, as well as mitigate the growing risk of costly and protracted litigation. The objectives are to maintain the banking relationship and avoid litigation.

ESI’s four principals have over a decade of involvement with class action lawsuits, DOL investigations and serving as an expert consultant successfully defending ESOP companies in class action litigation, as well as their current roles as consultants and independent members of Board of Directors, Committee Chairs, and CPA advisor to hundreds of ESOP companies.

ESOP Solutions for Private Liquidity
Banks’ private company clients with significant loan portfolios who decide to remain independent but must also provide liquidity for shareholder for retirement, health or personal problems, etc., need to completely understand the ESOP Option and how it provides shareholder liquidity while maintaining the private company’s independence.

ESOP Services, Inc. (ESI) has been a premier provider of ESOP and related transaction consulting services for over 40 years. ESI’s four principals bring over 100 years of collective consulting and operational experience in their respective capacities as Chairman of the Board, President, and CFO at ESOP companies, as well as their prior and current consulting roles structuring leveraged ESOP transactions.

Larger, more complex ESOP transactions mandate that banks ensure that bankers have up-to-date access to solutions for the many complex questions associated with ESOP formation, second stage ESOP transactions, repurchase obligation funding, equity incentives for key employees, distribution policy, plan termination IRC 1042 “tax-free” rollover, C corporation vs S corporation status, and related tax concerns.

This includes ESOP-related marketing and consulting services for structuring leveraged ESOP transactions including equity incentives attached to subordinated seller debt and/or awarded to key employees that will motivate private company owners and key employees to consider the ESOP Option.

Wanting to Remain ESOP-Owned
Sales of ESOP companies, class action lawsuits, Department of Labor (DOL) investigations, etc. mandate that ESOP companies with significant ESOP-related loan portfolios are structured to operate to minimize the possibility of an unwanted acquisition that will terminate the banking relationship, as well as mitigate the growing risk of costly and protracted litigation. The objectives are to maintain the banking relationship and avoid litigation.

ESI’s four principals have over a decade of involvement with class action lawsuits, DOL investigations and serving as an expert consultant successfully defending ESOP companies in class action litigation, as well as their current roles as consultants and independent members of Board of Directors, Committee Chairs, and CPA advisor to hundreds of ESOP companies.