Investment Banking >>> ESOP & ERISA Advisory Company A leading international architectural, engineering and construction management firm Background Ownership was concentrated among the descendants of the company's founder and the president of the company, with a small number of shares in the hands of the employees. Descendants were not part of the ìnext generationî management team. Issues The major shareholders were considering liquidity options   Owners wanted to maintain the management team   Owners wanted to reward long-time employees and improve current benefit package D&P's Role Reviewed and discussed liquidity options with the company   Created ESOP feasibility study   Assisted in assembling the transaction team, including attorneys, ESOP trustee, and ESOP administrator   Prepared financing memorandum   Organized management presentations to select lenders   Provided annual valuations to ESOP trustee Results ESOP purchased approximately 30% of the company’s stock   All shareholders were given the opportunity to participate (sell) in the transaction   Certain shareholders elected to take advantage of the capital gains tax deferral option available in certain ESOP transactions   Management remained intact   Improved benefits package provided to the employees   Company is positioned for additional ESOP transactions Essentials Cooperation from management and owners   Company had a strong financial history   Transaction was structured with a manageable level of debt