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ESOP Financing, Consultants & Advisors
ESOP Marketplace connects you with local ESOP Financing
Financing Advisors for ESOP Transactions
In the past, it has been very hard for business owners and their key advisors to know where to go for banking and financing, when their local banks had no experience in ESOPs. Our Banks and Financing Advisors have a successful history working with ESOPs and fund them every year, not just a time or two over many years. Besides institutional banks, we have Investment bankers and private equity solutions as well.
Whether you are considering being an ESOP, or are an ESOP, there are times when a business needs a good advisor that they don't already have. Our FINANCING and other categories represent the best advisors we could find. Our ESOP Advisors have been checked and vetted to assure business owners and their advisors that the person they are looking at is competent, trustworthy and respected in the ESOP Community. There are hundreds of Advisors out there offering ESOP related advice, but we have invited only the few who REALLY do many ESOPs to be placed on this site. As you look at the maps, you will see different colors or levels of pins on the page. Those pins in Blue or Red have financially participated in this website to assure the reader that they are committed to ESOPs, are continually educated themselves to keep up with the ever changing laws and practices, and want you to know they are equally committed to helping you with your ESOP or company issues. The Blue and Red pins also represent they have exposed themselves to the condition of having their references checked and shared with you. The staff at ESOP Marketplace check the references by calling and interviewing them, and then asking them to rate the participant on a scale of 1-5, 5 being the highest rating. We want you to be safe when you select your advisors.
Finding ESOP Financing With Sound Advice From Experts
Unless your company has deep reserves of cash on hand, funding for an ESOP typically comes from a third party, such as a bank or private equity firm. In some cases, the selling shareholder would assume the debt personally, rather than borrow from a third party. Choosing the right source of funds can be a difficult task, and even corporate officers who are used to dealing with debt and financing in areas such as investment and expansion can find themselves on uncertain ground.
The Types of Financing Alternatives are:
ESOP Commercial Banks: A bank (that accepts deposits) or a division of a bank that mostly deals with deposits and loans for businesses, as opposed to the general public. Generally, this form of banking offers loans that are the least expensive to acquire. Our ESOP Bankers know ESOPs and their proper loan structures that will save a company thousands of dollars in fees. Why? Their credit committees are experienced and knowledgeable on ESOP companies, thus they don’t add risk premiums and nasty loan covenants other Non ESOP banks would require.
ESOP Investment Bankers: Private firms or financial institutions that assists individuals, and companies; to help them raising capital to fund an Acquisition or ESOP Trust Transaction. ESOPs by law are trusts that buy securities, only the stock purchases are of the company the beneficiaries are employed at. Our ESOP Investment Bankers have decades of experience in assisting business owners with ownership succession.
ESOP Merchant Banks: Firms that negotiate for the owners to find or offer private equity investment by financial institutions or themselves in the unregistered securities of either privately or publicly held companies.
ESOP Mezzanine Financing: For ESOP companies seeking to acquire higher levels of leverage than commercial banks can offer, Mezzanine Financing exists. This form of financing refers to subordinated debt or preferred equity as a claim on a company's assets which is senior only to that of the common shares. ESOP Advisors like Will Stewart can answer your questions about how mezzanine financings can be structured either as unsecured and subordinated debt or preferred stock.
ESOP Private Equity: A private equity firm invests in operating companies through a variety of ways. For ESOPs, they may including leveraged buyouts, Acquisition capital, and growth capital for working capital.
Debt incurred while setting up an ESOP, whether it's external or self-financing, has a number of important differences from other obligations, due to the different payout schedule and specific regulations that govern its administration. If your company is planning an ESOP, you cannot do without expert help with soliciting, structuring and negotiating a debt agreement. Our listings will help you find an experienced ESOP financing advisor who will make the process easy and clear for you.
Not sure what an ESOP is? Learn more at What's an ESOP.