Benefit Capital, Inc. provides important and often indispensable services to ESOP transactions. Benefit Capital and its principals have been involved in over $2.5 billion in ESOP transactions during the past three years alone. Our experience should afford you a high level of confidence that the transaction design and structure we agree upon will satisfactorily meet the potentially differing objectives of the respective parties to the transaction.

We suggest you engage Benefit Capital for the following reasons:

  1. Benefit Capital possesses the requisite knowledge to facilitate ESOP transactions and maximize the ESOP benefits to any or all of the parties to the ESOP transaction, thus eliminating the need for the greater number of advisers that would be required if a firm with a narrower range of expertise were engaged.

  2. Benefit Capital has the ability to properly implement both full (100%) and partial (less than 100%) ESOP transactions, either of which can hold a number of traps for the unwary.

  3. Benefit Capital has extensive experience in properly structuring ESOP transactions designed to minimize estate and income taxes while at the same time maximizing shareholder values.

  4. Benefit Capital has the ability to design, structure, implement and monitor ESOPs that maximize the cash values recognized by the shareholders it represents.

  5. Benefit Capital often works with diverse shareholder groups which have different objectives in order to develop a structure which meets the majority of potentially competitive interests.

  6. Benefit Capital has the ability to access the appropriate financial markets in order to secure the financing required to consummate leveraged ESOP transactions.

  7. Benefit Capital has the ability to assess future repurchase liability obligations and to implement programs which substantially offset this impending liability.

  8. Benefit Capital traditionally performs a valuation analysis for the shareholders and utilizes this expertise to negotiate with the ESOP advisers regarding the value the shareholders receive as well as convince them that this value can be prudently sustained and advanced.

  9. Benefit Capital has expertise in developing productivity enhancement programs, often in a changing ESOP environment, that can be implemented to ensure that the future values of non-selling shareholders are maximized.

  10. Benefit Capital has the ability to assist the selling shareholders in the reinvestment of their proceeds in order to maximize their return.




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