ESOP Sell-Side Advisory

Our Process

For many business owners, the sale of their company is a once in a lifetime event. Selling your company to the employees may be the right choice, but don’t overlook the fact that the ESOP is a third-party buyer. Business owners who choose an ESOP exit strategy typically have different motivating factors for the sale. While price is important, issues such as company legacy, employee welfare and local community may be important factors as well. Advising business owners on ESOP exit strategies has always been the fundamental core of our service offering.

1. Preparation

Prairie will help determine a path that is appropriate for the unique characteristics of our client. It may take the form of a competitive auction or single target sale process.

Our ESOP sell-side approach is comprehensive. We begin by understanding our client’s objectives. Our in-depth valuation guidance will provide an indication of what to expect from an ESOP transaction. We will create a structure that helps achieve short and long-term goals whether its immediate liquidity or fixed-income focused.

2. Initiate Process

Develop marketing materials
Debt capital raise (if needed)
Arrange transaction team

Once valuation and transaction structure has been conceptualized, we will begin our process by developing confidential marketing materials which are critical to explaining the merits of the transaction to the lending community and the ESOP fiduciary. We will begin contacting various lending institutions in addition to other professionals who will be vital to a successful transaction.

3. Manage Process

Buyer due diligence
Select financing sources

Once the transaction teams have been arranged, we will begin to coordinate due diligence with the ESOP team and begin analyzing term sheets from various lending institutions. We will advise on selecting a lending partner that delivers the best overall fit to the transaction. Once the ESOP team has had time to conduct their analysis, we will begin negotiations.

4. Close Transaction

Coordination of legal documents
Resolve open issues
Close and fund transaction

Our team brings a wealth knowledge during the final stages of a transaction. Without proper representation, the process can often become stagnant. Time is the enemy. We will remain actively involved to help ensure all parties are moving towards close.

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Since our inception, Prairie Capital Advisors has served business owners and ESOP Fiduciaries on endless ESOP matters.

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Middle - Market Focus

Middle - Market Focus

Prairie Capital Advisors is dedicated to serving the investment banking and financial advisory needs of middle - market business owners

Ownership Transition

Ownership Transition

A successful transition needs a well-thought- out strategy. We will help define, shape, and implement a plan that meets your short-term and long-term objectives

Corporate Growth

Corporate Growth

Build or buy? It could be both. Prairie Capital Advisor’s strong relationships with debt and equity capital sources will help you realize your corporate growth strategies

Business Sustainability

Business Sustainability

Sustainability requires strategies that grow the enterprise and minimize risks. Prairie advises companies on strategies that result in long-term shareholder value