Managing Director Pilot Hill Advisors LLC Summit, NJ
This session will discuss how ESOP transactions are financed, and how ESOPs are funded post-transaction. The focus will be on the various sources of financing – bank financing, seller financing, and company cash, as well as the various financing structures. NCEO Publication: Selling to an ESOP and Financing the Deal NCEO Toolkit: ESOP Finance & Lender Directory
Learning Objectives:
The main objective is to have the audience understand the ESOP financing alternatives, with an emphasis on conveying the flexibility of ESOP financing. This includes the tax implications.
The second objective is to have the audience understand that bank-financed 100% buyouts are not the only way to go. There are numerous other structures that are less cash-flow dependent.
The third objective is to touch on the more sophisticated financing tools such as warrants, SARs, and earnouts.
