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TEJU Partners assists owners, managers,
workers and unions in in evaluating, structuring,
negotiating and financing employee buyouts and Employee
Stock Ownership Plans (ESOPs).
We specialize in providing liquidity for owners of privately
held corporations and facilitating buyouts of divisions and
subsidiaries of public or private corporations. TEJU
Partners helps clients restructure a company's ownership and
control, and provides the financing that makes the new
structure possible. We are experts at using ESOP financing
techniques and utilize a wide range of capital strategies to
structure the most advantageous transaction possible.
ESOPs have proven extremely effective in a variety of
corporate transactions. When management and other employees
want to acquire their firm or bid against competing firms to
buy it, a leveraged ESOP may reduce the cost of borrowing
for the transaction by as much as 30 percent. Furthermore,
the principal payments, as well as interest payments on such
debt, can be made with pre-tax income. An ESOP makes it
possible to exchange ownership for employee-related cost
reductions. This combination of factors makes a management
and employee buyout highly competitive compared to non-ESOP
bids.
When an owner wants to liquidate closely held stock,
existing management and other employees may be the ideal
buyer. The tax advantages of an ESOP-financed transaction
can provide the seller with more value than other
alternatives. Most importantly, the seller can roll over the
proceeds and defer all tax liabilities. Debt service will be
lower if accomplished through an ESOP leveraged buyout.
TEJU Partners broad expertise in implementing employee
ownership can be utilized to assist owners, managers and
employees in assessing the viability of such transactions. |
