Locke Supply, Inc.
ATI Capital Group, Inc. represented the majority shareholders of Locke Supply, Inc. in a combination equity recapitalization –Multi Stage Employee Stock Ownership Plan. Locke Supply is a fierce competitor in the building materials and home supply industry. The Company has been in business for almost fifty years with one owner and management team for much of that time. The Company competes head on with the Home Depot and Lowe’s Home Improvement. Understanding this need to compete on product and price we structured a multi-stage 100% ESOP converting to an “S” Corporation at the appropriate time.
Immediately after the untimely death of the founder and sole shareholder, we completed a majority stock sale to the ESOP. This transaction was life altering for the widow since over 90% of their wealth was tied up in the business. At the appropriate time, a very favorable sale of the balance of the stock to the ESOP was completed. Once 100% owned by its ESOP the officers and directors of Locke Supply with the approval of the Trustee, made an “S” election. The company immediately discontinued making its quarterly income tax deposits and has been able to achieve substantial revenue growth and has added over 200 employees over the last four years. The Company has the ability to compete with the above mentioned competitors on price due to the favorable tax treatment of its “S” Corp. ESOP.
Download Tombstone
|
