EFS Offers:
- Expertise in ESOP Transactions:
- Over 40 years of experience in structuring complex ESOP transactions
- Deep understanding of regulatory requirements by the Department of Labor and the Internal Revenue Service
- Ensuring compliance while delivering economic returns to participants
- Proven Track Record:
- Successfully executed hundreds of ESOP transactions
- Vast experience across companies of all sizes, from small to large corporations
- Navigated diverse industries and business structures
- Dedicated Support:
- Team of seasoned professionals guiding you through every stage of the ESOP transaction process
- Personalized attention and tailored solutions
- Unparalleled support for a smooth and successful ESOP implementation
- Maximizing Benefits:
- Leveraging our expertise and reputation to help you achieve your goals
- Maximizing the benefits of your ESOP for your company and its stakeholders
| Transactions | Value of EFS | |
| Second-Stage 100% S ESOP |
Defense Contractor51% sale for $84M |
Completed feasibility analysis including evaluation of impact of transaction on the company’s ESOP repurchase obligation, created Stock Appreciation Rights as a management incentive plan, managed the implementation process including 401(k) lateral transfer |
| C-Corp ESOP + 1042 Election |
Department of Energy Contractor 20% sale for $11.8M |
Successfully managed the ESOP process for a minority transaction for the sale of convertible preferred stock to an ESOP followed by a 1042 election by selling shareholders |
| Sale of ESOP-Owned Company |
Buying and Consulting Group 100% sale for $30M |
Assisted a long-term 100% ESOP-owned client evaluate its succession planning opportunities which resulted in selecting an Investment Banking Group to conduct a controlled auction and the sale of the company’s assets to a strategic buyer, followed by termination of ESOP |
| ESOP Termination |
Industrial Contractor 42% sale for $2.18M |
Assisted a long-term 30% ESOP-owned client to merge the ESOP into its 401(k) plan with the Company stock being purchased by the company |
| S-Corp ESOP |
Specialty Contractor 100% sale for $60.5M |
Prepared a feasibility analysis, conducted trustee selection due diligence, and structured a transaction in which the Company distributed the shareholder’s’ $10.5M tax basis in cash followed by the Company entering into a redemption and subscription transaction for $50M |
Why Choose EFS over an Investment Bank ESOP Firm:
ESOP transactions involve two types of advisors: investment bankers and ESOP consultants.
- Fee Structure:
- Investment Bankers: Charge a success fee based on the stock value sold to the ESOP, often with a substantial minimum fee.
- ESOP Consultants: Base fees on the time committed to implementing the transaction, similar to attorneys and CPAs.
- Cost Savings:
- Engaging an ESOP Consultant yields substantial savings, particularly for larger transactions.
- Fee Payment Timing:
- Investment Bankers: Paid a success fee only if the transaction closes, similar to real estate brokers.
- ESOP Consultants: Invoice fees monthly during the implementation process, aligning with the work performed.
- Post-Transaction Obligations:
- Investment Bankers: Often have a 1-3 year tail, requiring payment if there is a sale to any party, even if the ESOP transaction does not close.
- ESOP Consultants: No post-transaction obligations beyond the scope of the engagement.
- Proprietary Strategies:
- Investment Bankers: May claim to have proprietary concepts, but there are no proprietary ESOP ideas. Experienced ESOP sell-side advisors are aware of the planning strategies recommended by others in the industry.
