Managers and employee groups periodically get a "chance of a lifetime" when their company's shareholders or board of directors offer the opportunity to buy the business they manage. After the initial excitement wears off, the reality of the complexity of the process begins to set in, especially since you still have to operate the business. This is where we can help.

Kent Group advises management teams and employee groups in the acquisition of a company, product line, business unit, subsidiary or division. We work closely with the management team to analyze the opportunity, determine the proper value, negotiate the transaction and, after a letter of intent has been signed, Kent Group will arrange the debt and equity financing necessary to close the transaction. As an effective facilitator, we ensure an efficient and seamless transaction that can be readily financed.

An Employee Stock Ownership Plan (ESOP) is another tool that can be utilized by employee groups when acquiring a company or business unit. An ESOP is an employee benefit plan allowing the employees to become owners of their company. One feature making an ESOP unique is its ability to borrow lower cost capital. Consequently, an ESOP can use financial leverage to acquire company stock, which can result in tax benefits to the ESOP's corporate sponsor.

While establishing an ESOP is complicated, it should not discourage interested companies and their existing shareholders from investigating employee ownership as an exit or corporate finance strategy. ESOP transactions can result in substantial benefits to existing shareholders, such as increased employee motivation, a market for existing shares, and income tax advantages on shares of stock sold to the ESOP. Kent Group will help you understand and manage the process.