Summit, NJ: Pilot Hill Advisors is pleased to annouce their client, founder and sole owner of a precision machining company, recently completed the sale of a large, minority interest block of stock to the company's newly formed Employee Stock Ownership Plan.
Many factors went in to choosing the ESOP for this transition including the goal of diversifying the owner's stake in the business and tax savings, but also to share the value of the business his employees helped create. Though the company had received offers for the business, the founder saw the best stewards of his legacy to be the people that work there everyday. While the founder is decreasing his ownership and involvement, he has left in place a professional management team to carry the business on for many years. However the balance of the founder's stock may transfer. the company employees will continue their ownership.
Congratulations to the founder, leadership team and the experienced ESOP and finance professions that assisted in completing this sale. Pilot Hill Advisors was proud to assist the owner evaluate his options and negotiate this transaction.