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How Financing Impacts the Company and Selling Shareholders - UBS

Webinars

Continuing Education Credit Offered: CPE, Generic

In any ESOP transaction, different financing structures can have different outcomes for the company and the selling shareholders. This session will cover the pros and cons of various financing options for leveraged ESOP transactions, such as senior and subordinated debt and seller financing. We will also review how each option impacts the company and the selling shareholders post-transaction.

Learning Objectives

1)  Understand the differences between senior debt, subordinated debt (or “mezzanine financing”), and seller financing
2)  Understand how the financing structure of a transaction impacts the company in terms of debt obligations, cash flows, and operations
3)  Understand how the financing structure impacts the selling shareholders in terms of the cash they receive at the closing of the transaction; the timeline for the shareholders to be fully paid out from their sale proceeds; and potential tax strategies/outcomes from the transaction

Presenters

Nick Francia headshot Presenter company logo

Nick Francia

Nick joined UBS in 2011. As a member of The Capital ESOP Group, Nick focuses on educating business owners on different tax-efficient monetization strategies, empowering them to make informed decisions. Nick also creates tailored cash flow models comparing the taxable sale of privately held businesses and a Section 1042 tax-deferred sale to an ESOP. In 2018 Nick was recognized by Forbes as one of America's Top Next-Generation Wealth Advisors. Nick graduated from the University of Mary Washington, where he earned a bachelor's degree in economics.
Edward C. Renenger headshot Presenter company logo

Edward C. Renenger

Ed Renenger is President of SES ESOP Strategies, a Stevens & Lee/Griffin affiliated company, and Co-Chair of Stevens & Lee's ESOP Group and the Employee Benefits and Executive Compensation Group. He concentrates his practice in helping companies navigate the complexities of employee stock ownership plans (ESOPs). In this capacity, Ed advises business owners on how to sell their companies to employees through an ESOP. This process typically involves working with the company to first determine the feasibility and impact of creating an ESOP, consulting on whether the ESOP accomplishes the goals of the relevant stakeholders, designing the appropriate structure to accomplish those goals, implementing the transaction and then assisting the company with the ongoing administration and compliance of the ESOP.

Thank you to our Sponsors

Blue Ridge
Chartwell
KSM
McDermott Will & Emery
PCE Investment Bankers, Inc.
Prairie
Praxis
Strategic Talent Partners
Texas Center for Employee Ownership