Whitman Funding Solutions Supported an ESOP Transition for a Fast-Growing Company
Advisory Services
Funding Solutions
A rapidly growing company successfully completed a 100% ESOP conversion with the support of Whitman Advisory. Through strategic financial leadership, specialized ESOP financing, and transaction support, the company secured a $5M million SBA7a loan to support long-term growth and ownership transition.
Challenge
This New York-based company had experienced explosive growth, doubling revenue year over year. At the same time, the owner faced a serious health emergency that accelerated the need to explore succession and exit planning options. After evaluating alternatives, the owner decided that an Employee Stock Ownership Plan (ESOP) offered the best path forward.
The transaction presented several significant challenges. The company’s rapid growth had outpaced the maturity of its financial reporting systems, which were largely homegrown and not structured for a complex ESOP transaction. Financing was also difficult due to the absence of a personal guarantee, limited collateral, and the company’s accelerated growth trajectory.
Solution
Whitman Funding Solutions assembled a strategic deal team to guide the ESOP conversion from start to finish. Recognizing the need for stronger financial infrastructure, the Whitman CFO Solutions team stepped in to enhance financial reporting processes and help build an accounting team capable of supporting a growing organization.
At the same time, Whitman quarterbacked the entire transaction process, coordinating advisors, lenders, and stakeholders throughout the deal. Financing was ultimately secured through a specialized SBA lender experienced in ESOP transactions.
The final structure combined SBA 7(a) financing with a seller note, maximizing cash at close while aligning with the traditional structure of ESOP transactions.
Outcome
The company successfully completed its 100% ESOP conversion and is now approaching its second year post-transaction. Since the conversion, the business has continued making strategic growth decisions while benefiting from stronger financial infrastructure and leadership support. Whitman Advisory’s CFO remains actively involved with to ensure good transitions as the accounting team grows.
The transaction not only created a successful ownership transition, but also positioned the company for sustainable long-term growth under its new employee-owned structure.
“
I can’t thank Cris O’Keefe enough for her immense professionalism and patience during the conversion of my business to an ESOP. Cris could have taught a class on ‘Calmness in Chaos!’ Her reassuring presence made the whole process less daunting, even when I was contemplating whether to sell my business or just run away to a remote island. Thanks to their guidance, I can now focus on island-hopping instead of business-hopping!