Skip to Main Content

Creation of a New ESOP

Warner represented a client company that operated, prior to the ESOP creation, through separate corporate entities. We consolidated those entities on a tax-free basis to position the company to maximize the value of the ESOP transaction. We then helped the company negotiate approval of the transaction with the company’s key stakeholders, including the shareholders, senior lender, bonding company and the union representing a large percentage of the company’s employees. We also negotiated the transaction terms with an independent ESOP trustee. Our work ultimately resulted in a successful closing and the transition of the company’s ownership to become a 100% ESOP-owned company.