Pritchard & Abbott, Inc.
ATI Capital Group, Inc. represented the co-trustees of Pritchard & Abbott, Inc. in a combination equity recapitalization-Employee Stock Ownership Plan, “stage two” ESOP transaction. Pritchard & Abbott is the leader in providing real property and mass appraisals for property that contains below ground reserves of oil and gas. The Company also provides real property appraisals for commercial, industrial and utility properties throughout the Southern portion of the United States. The Company’s services are provided primarily to local, county and state taxing authorities.
The recap and sale to the Company’s existing ESOP and Trust represented approximately 17% of the then outstanding stock. This transaction increased the ownership of the ESOP to 100%. Once 100% owned by the ESOP, the co-trustees made an election to be taxed as a “S” Corporation which, under the current tax law, eliminates the Company’s income tax liability. This restructure translated to an immediate increase in value of over $2,000,000 to the existing shareholders and participants of the plan, furthermore it gives the managers, and employees a renewed common incentive toward improved productivity, profitability and ultimately a higher share value.
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