EOT Finance

Private Capital

Through our affiliate, EOT Capital, we help companies explore private capital solutions that can provide immediate liquidity while supporting an Employee Ownership Trust transaction.

Private capital may be appropriate when business owners seek to:

• Increase cash received at closing

• Reduce reliance on seller financing

• Provide growth capital for future expansion

• Fund acquisitions or strategic investments

• Strengthen the company's post-transaction financial position

We work with clients to determine whether private capital is appropriate for their circumstances and help negotiate financing structures that complement the objectives of employee ownership rather than compromise them.

Commercial Bank Financing

Commercial bank financing is frequently an important component of an Employee Ownership Trust transaction.

Selecting the right lending partner—and negotiating favorable terms—can have a meaningful impact on both the seller's proceeds and the company's future financial flexibility. EOT Advisors works with an established network of commercial lenders that understand business succession transactions and employee ownership structures. We assist clients throughout the financing process by:

• Identifying lenders that are a strong fit for the transaction

• Preparing financial information and lender presentations

• Coordinating due diligence

• Supporting valuation discussions

• Comparing financing proposals

• Negotiating competitive interest rates and loan terms

• Coordinating the financing process through closing

Our objective is to maximize available financing while maintaining a prudent capital structure that allows the business to continue investing in its employees and future growth.

Seller Financing

Seller financing remains one of the most effective and flexible tools available in many Employee Ownership Trust transactions.

It enables business owners to facilitate the transition while often increasing the total value realized over time. EOT Advisors helps sellers design financing arrangements that balance liquidity, risk, tax efficiency, and cash flow. We assist in determining:

• Appropriate down payment amounts

• Loan maturity and repayment schedules

• Interest rates

• Security arrangements

• Payment priorities

• Balloon payment structures, when appropriate

• Flexibility for future refinancing or early repayment

Our recommendations are designed to protect the seller's financial interests while ensuring that repayment obligations remain sustainable for the company.

Integrated Capital Structure

Most successful Employee Ownership Trust transactions utilize more than one source of financing.

We help clients evaluate the optimal combination of:

• Commercial bank debt

• Seller financing

• Private capital

• Existing company cash

• Future operating cash flow

Every financing decision is analyzed in conjunction with valuation, tax planning, transaction structure, and the company's long-term strategic objectives. Rather than viewing financing as an isolated component of the transaction, we integrate it into a comprehensive succession plan.

Negotiation and Transaction Support

Financing negotiations involve much more than obtaining a loan commitment.

EOT Advisors serves as an advocate for business owners throughout the process by coordinating discussions among lenders, investors, legal counsel, accountants, and other advisors. Our involvement helps streamline the transaction, resolve issues before closing, and ensure that financing terms support—not hinder—the long-term success of employee ownership.

Financing Designed Around Your Goals

Every business owner has different priorities.

Some seek maximum cash at closing. Others prioritize tax efficiency, predictable retirement income, business growth, employee stability, or preserving family wealth. We begin every engagement by understanding these objectives and then designing a financing strategy that supports them. The result is an Employee Ownership Trust transaction that provides the liquidity you need while positioning your company for continued success under employee ownership.

SCHEDULE A FREE EOT CONSULTATION

To learn whether an EOT is the right path for your company, schedule a free consultation or call (800) 289-9865.

You can also email us your questions at info@eotadvisors.com.