Five Takeaways for Government Contractors Considering ESOP Transactions

Written on March 13, 2017

We had a great turnout for our ESOP seminar last Tuesday! If you weren’t able to make it, here are a few takeaways for Government Contractors contemplating an ESOP transaction:

1. ESOP’s are a great way to attract/retain top talent and maintain corporate culture.
2. Since the 2007 changes in the small business rules, there has been a convergence in ESOP transactions values compared with strategic transactions.
3. Strength of management team, diversification and market recognition are valuation drivers.
4. The company should identify go/no-go decisions around projected value range and availability of senior debt.
5. Stock Appreciation Rights (SARs) can provide a valuable incentive and retention mechanism for your management team post-transaction.

If you have questions about this powerful founder exit and company continuation planning strategy, please contact Hobie Frady or Todd McAdams at 256.533.7610.

Thanks to Executive Financial Services, Inc., Stout Risius Ross, PeopleTec, and IBERIABANK for partnering with us to make this event such a success!

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