Below are real stories of clients we have helped establish ESOPs.
After reading, if you would like to see what an ESOP can do for you, contact us.
Success Story: A Leveraged Buyout
A Midwest manufacturing company’s founders were looking for a suitable exit strategy. With the help of our team, they established their ESOP in 2002 to purchase all of the founders’ stock.
The ESOP used debt to make the purchase. Later, the ESOP purchased the stock of the founders’ children, making it a 100% employee-owned S-Corp ESOP.
This company makes full use of the tax advantages of an ESOP. Because it is a 100% S-Corp ESOP, no income taxes are paid by the company or its ESOP.
Since its founding, approximately $25 million in stock has been allocated to employees’ ESOP accounts and the ESOP currently has roughly $100 million in assets.
Success Story: A Gradual Transition
Our team helped their client, a chemical distribution company, establish their ESOP in 2004. The ESOP initially purchased 30% of the owners’ stock. The remaining balance of the stock was later purchased in two subsequent transactions.
Because this company is a 100% S-Corp ESOP, no income taxes are paid by the company or its ESOP.
Since its founding, around $25 million of stock has been allocated to employees’ ESOP accounts and the ESOP currently has upwards of $90 million in assets.