Concrete Construction Company


  • Specialized C-8 concrete contractor
  • High quality concrete foundation construction for tract home builders, custom home builders, and commercial general contractors
  • S Corporation with approximately 530 employees
  • Company value $28,000,000
  • 4 shareholders, no family members involved in the business


  • Shareholders are looking for an exit strategy within 7 years
  • Eliminate corporate taxes


  • Establish an ESOP
  • All shareholders will sell 100% of their stock to the ESOP
  • In exchange for selling their stock sellers will receive cash and seller notes
  • $1,500,000 down payment from Company cash to use towards paying down the shareholder Accumulated Adjustment Account balances
  • Balance of AAA and stock sale will be funded by seller notes

Benefit to Client

  • 15 year seller notes totaling $26,500,000
  • Life of loan interest of approximately $4,900,000
  • Shareholders received Warrants to divide between seller note holders
  • At the end of the seller note period the projected value of the Warrants is estimated to be $14,600,000
  • As a 100% S Corp ESOP owned company, 100% of future profit will not be taxed from that point forward
  • Over the next 15 years the corporate tax savings are estimated to be over $52,000,000