CSG Partners provides restructuring services to maximize cash flows for companies that previously implemented ESOP transactions. In our experience, many transactions in the ESOP marketplace are not structured optimally and fail to maximize cash flows. Even for transactions that were structured optimally at the closing, changes invariably occur in a company’s life cycle, financial performance, and shareholders’ objectives. Without reviewing the ESOP transaction over time, companies and selling shareholders can leave substantial money on the table.
For example, post closing a company may have declining performance, is breaking financial covenants, paying alternative minimum taxes, not utilizing ESOP-related tax deductions to the fullest extent, or is not amortizing debt to the fullest extent.
With our restructuring services, we perform full analytical assessment of the ESOP and capital structure. After identifying potential issues, we then design strategies to maximize cash flows for the company and selling owners: