Prioritizing client education to empower decision makers throughout their transaction

Are you a business owner considering a partial or total ESOP (Employee Stock Ownership Plan)?  If so, you are likely to find that the Tax Cuts and Jobs Act of 2017 will produce greater benefits for you and your company’s stakeholders than before the law was passed. 

Because many provisions will favorably impact new ESOP formation and existing ESOPs, we expect to see more new ESOPs and more second or third stage ESOP transactions. 

Research consistently shows that the additional cost of an investment banker is a fraction of the value they add.  

Late last year Congress passed the final version of the Tax Cuts and Jobs Act of 2017. Although the plan does not alter ESOP legislation, there are some indirect effects on ESOPs.  Some of the changes will impact the valuations of ESOP-owned companies.

Among the fastest ways for a company to grow entity value is through accretive acquisitions. With a well-executed acquisition strategy, companies can realize significant value in the first year, which often accelerates in the years that follow.

Lennar Corporation recently announced the acquisition of CalAtlantic Group.  Together, the companies form the largest home builder in the U.S.

Bloomberg reports private equity firms currently have more than $950 billion of capital waiting to be invested in the marketplace.

In this favorable market, how do sellers contemplating an exit from their business decide whether to pursue an M&A sell-side transaction or the formation of an Employee Stock Ownership Plan (ESOP)?  They don’t.  Instead, they run a dual track process which provides knowledge of possible outcomes simultaneously.  This allows the seller to make the best choice for his/her situation based on actual offers and company specific options.

The cybersecurity industry is experiencing strategic M&A activity as major security breaches are on the rise.  With renowned, trusted firms such as Equifax and Deloitte among the victims, many companies are increasing their investments in cybersecurity.

Successful transactions require important decisions about rebranding— if, when and how to transition an acquired brand. Unfortunately, these brand strategy considerations are often overlooked or only considered after the acquisition. This is partly because there is a lack of relevant historical data for analysis.

For the first time ever, the six most valuable companies in the world, by market cap, were all technology companies.