Summit, NJ: The principals of Pilot Hill Advisors, through their broker/dealer Corporate Finance Associates, are pleased to announce it has successfully assisted its client complete a 100% ESOP sale of stock to its newly-formed ESOP.
The company was founded in the early '60s and with this sale, completed its third ownership transition. Given the growth and size of the business it became too costly for an internal buyout, which is how the prior transitions occurred. By using the ESOP, the company was able to provide a potentially substantial employee retirement benefit as well as create a tax free corporation. Eliminating corporate taxes will help the company accelerate its buyout repayments and provide a capital cushion for the inevitable business slowdown.
The principals of Pilot Hill Advisors worked closely with the company's leadership team, attorneys, and accountants to plan, negotiate and complete this sale.