Employee stock ownership plan (ESOP) financing is a core service at SES Advisors. SES Advisors ESOP financing professionals are seasoned in assisting clients with structuring, soliciting and negotiating various forms of ESOP financing transactions. When it comes to ESOP financing, many ESOP transactions require external funding from a bank or other debt financing providers.
In cases where an ESOP or its corporate sponsor borrows money from a bank or other qualified lender, this is known as a leveraged ESOP. The ESOP company agrees that it will contribute to the trust which enable it to reduce the loan on schedule. Another method would be for the company to borrow directly and make a loan back to the ESOP. The company can use the cash to buy new shares of stock in the company if it meant to provide new capital for the company. If the leveraging is being used to buy out the stock of an existing owner, the ESOP will acquire those shares. ESOP leveraging can also be used to buy back publicly-traded stock, make acquisitions, or for any other corporate purpose.
SES Advisors clients benefit from a deep understanding of the immediate and ongoing subtleties associated with ESOP financing. Our background as commercial and investment bankers provides clients with insight and negotiating leverage, especially with respect to key ESOP financing terms that will be mutually acceptable for the client and the lender.
SES Advisors will work with incumbent and other local ESOP financing sources as well as introduce clients to experienced national ESOP financing lenders.
Don’t trust your ESOP Financing to anyone else. Let SES Advisors put your ESOP financing on the fast track to success!