Employee Stock Ownership Plans

Our office has been instrumental in structuring and implementing over fifty leveraged ESOP transactions involving the sale of company stock to an ESOP by majority stockholders.  The transactions have been as small as $1,000,000 and up to $50,000,000 in sales prices.  They have involved a wide variety of businesses, including manufacturing, construction, service and agricultural firms. 

Our most recent transaction involved an ESOP that acquired 100% of the outstanding stock of the employer worth in excess of $30,000,000 and has over 800 employees.  This ESOP is a so-called Subchapter S ESOP which offers substantial tax benefits to its new employee owners including enhanced cash flow available to amortize the outstanding stock acquisition indebtedness being carried by the ESOP.  


We were recently engaged to assist a bank lender who was making an employer securities acquisition loan to an ESOP sponsor who used the funds to finance the payoff of earlier securities acquisition loans that were outstanding for the ESOP.  

What is an ESOP? | Notice Regarding ERISA Interim Amendments and Non-amenders