Employee Stock Ownership Plan (ESOP) Group Capabilities

Chase maintains over 1,200 banking relationships with ESOP companies, including over 600 lending relationships, more than any other U.S. bank. Our experience and national focus position us as the provider of choice for companies seeking to maximize the benefits of an ESOP. Our qualifications and experience include:

Depth of Knowledge

  • Deep expertise in analyzing and structuring complex ESOP financings developed over years of involvement in ESOP transactions
  • Leadership in ESOP organizations
  • Strong relationships with leading ESOP professionals

National Footprint

Collaboration with bankers, underwriters and investment professionals across Chase’s national platform including:

  • Commercial Banking
  • Investment Banking
  • Wealth Management / Private Banking
  • Chase Capital and Chase Placements

Technical Leadership

  • Involved in complex structuring issues
    • New and second stage ESOP transactions
    • M&A and corporate finance transactions
  • Mature ESOP issues, including repurchase obligation
  • Experience with IRS and Department of Labor compliance issues


  • From 2007 to 2011 the ESOP Advisory Group reviewed an average of 145 ESOPs annually
  • Extended $411 million in financing in 2011 to ESOP companies
  • Reviewed 222 ESOP situations, closing 61 deals in 2011
  • Through September 2012 we have reviewed 197 transactions of which 52 deals were closed totaling $836.25 million in financing

ESOP Experience

The ESOP Advisory Group helps make Chase more than just a financing source for ESOP transactions. Our collective experience and depth of knowledge allow us to understand problems that other banks do not and highlight issues in a true advisory capacity.

Transaction Value of the ESOP Advisory Group
Building Components Company: Provided this new ESOP company with $15 million in senior financing to partially fund a 55% purchase by the ESOP. Performed preliminary feasibility analysis demonstrating ability to finance ESOP. During execution, the ESOP Advisory Group and bank counsel identified critical technical issues and worked to avoid major ESOP compliance problems.
Cement Company: Provided this new ESOP company with $10 million of senior financing to partially finance a 100%, tax- deferred sale to an ESOP under IRC Section 1042. Company elected S corporation status. Transaction was structured with warrants, management equity and seller paper, raising several complex issues. The ESOP Advisory Group and bankers in market addressed and resolved issues, clearing the way for successful execution.
Lumber Company: As the primary bank, led in the modification of a $37 million multi-bank senior financing to provide borrower with flexibility to make repurchase obligation payments. We educated the bank group concerning the restructuring of the borrower’s repurchase obligation, which allowed a struggling company to deal with a temporary spike in repurchase obligation payments.
Metals Company: Provided $53 million in senior financing. Identified missing elements of IRC Sec. 409(p) compliance monitoring; assisted company in resolving 409(p) issues with company counsel. The ESOP Advisory Group prevented a major tax violation.
Tractor Company: Provided $9 million in senior financing, including $6 million to fund termination of its ESOP through purchase of ESOP’s stock by management and an outside investor. The ESOP Advisory Group’s knowledge of complex plan termination rules facilitated successful transaction to terminate ESOP.

To learn more about our ESOPs, please
contact us or call your Commercial Banker.