ESOP Financing

Providing a complete range of financial and consulting services to companies considering an ESOP and to established ESOPs.

SES ESOP Strategies has decades of experience in structuring ESOP transactions and working with lenders of all types across the country. Most of our clients rely upon us to help them structure transactions through the ESOP feasibility study process. Many then engage Griffin Financial Group, our affiliated FINRA-licensed investment bank, to raise ESOP financing through a competitive bid process or to assist in negotiating financing terms with an existing banking relationship.

SES ESOP Strategies and its affiliated investment bank, Griffin Financial Group, provide a complete range of financial and consulting services to companies considering an ESOP and to established ESOPs:

Establishing an ESOP

  • Help companies clarify their objectives (financial or otherwise) and explore a broad range of strategic alternatives, including an ESOP, a leveraged management buyout, an old-to-young recapitalization, selling to a strategic or financial buyer or numerous other possibilities
  • This preliminary review may determine that an ESOP is not suitable, and in those cases, we can help owners determine the best alternative structure to fit their unique situation
  • If an ESOP is the best choice for accomplishing company objectives, the process includes examining the size, structure and financing terms to ensure the transaction is successful
  • Along with assessing the impact of the ESOP on its shareholders, the sponsoring company, the employees and the ESOP itself, the company’s debt borrowing capacity and future cash flows must be taken into account. If applicable, we can help raise the debt necessary to fund the transaction
  • Assist companies in the due diligence process to ensure a successful path forward
  • Assist in choosing advisors, negotiating terms and conditions, and documenting and implementing the transaction

Established ESOPs

  • Financial modeling studies, including:
    • Alternatives to deal with repurchase liabilities
    • Alternatives to deal with ineffective ESOPs
    • Alternatives to help grow through acquisition or organically
  • Feasibility studies for second stage ESOP transactions
  • Capital Raises
  • Recapitalizations
  • Sale of an ESOP-owned Company
  • Designing synthetic equity and other compensation arrangements for senior executives
  • Employee communications
  • Financially stressed situations

Investment banking services are provided by SES affiliate Griffin Financial Group LLC, member FINRA, member SIPC.