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CSG in the News - Summer 2025
August 28, 2025
CSG Partners Staff
Employee stock ownership plans offer a range of stakeholder benefits that are fairly universal across middle-market businesses. Nonetheless, a well-crafted ESOP can provide even greater utility in specific industry segments and business lifecycle circumstances. Employee-owned companies that leverage these niche advantages often find themselves better positioned among their competitive set.
Industry-focused media are increasingly highlighting these unique benefits. That trend continued this summer, as For Construction Pros, Washington Technology (government contracting), and HighLift Financial (automotive) all presented robust employee ownership coverage, with CSG Partners featured prominently. Read on for excerpts and links to full interviews, as well as a conversation between CSG's founder, Larry Kaplan, and ION Analytics on the rise of ESOPs as business transition and corporate finance strategies.
ION Analytics Influencers Interviews Lawrence Kaplan
The Evolution of ESOPs
"The ESOP ecosystem has grown significantly... In the early 2000s, there were no private credit lenders, and banks were only lending to an ESOP if the owner guaranteed the transaction's debt.
So, if you're selling your company and looking to do a liquidity transaction, guaranteeing that debt is like saying, 'Well, I'm taking chips off the table, but I have to personally guarantee the transaction - so what did I accomplish? I accomplished nothing.'"
"And so the banks came up to speed... Today, virtually every major bank has an ESOP lending group that works with its bankers nationwide on transactions. That's huge because local bankers can rely on the professionals within the bank to help them get through the transactions."
"The expansion of dedicated ESOP lending teams within major banks and the rise of specialized ESOP groups within leading law firms have created a robust, sophisticated ecosystem capable of supporting transactions ranging from millions to billions in value."
For Construction Pros Interviews George Thacker
Putting ESOPs to Work in Construction
"We always hear about companies starting from humble beginnings: a bucket of tools, a truck, and the drive to succeed. With hard work, careful planning, and a little luck, the businesses grow into real enterprises.
Owners used to hand these companies down to their children. Many of those kids had worked in the business since they could manage paperwork or pick up a shovel. That’s not necessarily the case anymore. Many owners either don’t have children interested in taking over or a legacy plan in general. For them, the 'what’s next' idea can be overwhelming.
ESOPs offer a flexible, independent path forward. Owners can get fair market liquidity for their hard-earned equity, eliminate taxes, and offer their employees stock in the business (without them having to pay for it). It’s a tremendous incentive structure all around, which is why you see so many construction companies forming ESOPs."
Thacker's complete interview is available on For Construction Pros.
Washington Technology's WT 360 Interviews David Blauzvern
Is Employee Ownership Right for Your Company?
"In the government contracting space, the top multiples are paid by public companies and by certain private equity firms that exist in the marketplace... We're firm believers that you should consider how an ESOP compares with a PE sale."
"Let's say that you have a PE firm that's willing to pay $100 million for your company. By definition, an ESOP can pay the exact price that a financial buyer is willing to pay. The difference from the owner's perspective is that an ESOP comes with a lot of tax benefits, both for the selling shareholder and for the company."
"If you are looking for a 15–20x multiple, all-cash at close, and to fully move on from your business, an ESOP is not the right fit... If you want to find a business partner to take you to the next level and you don’t have that capability in-house with your existing management team, an ESOP is not the right fit for you."
"But it's interesting to note that over 90% of business owners who move forward with an ESOP are happy that they did. There are numerous statistics showing that employee-owned businesses perform better than non-employee-owned businesses."
High Lift Financial Interviews Steven Golden
Exploring the Benefits of ESOPs for Collision Shops
"An ESOP sale is not like private equity, where a firm buys in and, within five years, they have to double or triple their investors' money... Instead, an ESOP is a sale to a trust, with your employees as the beneficiaries. A third-party trustee represents those employees, but the employees are not involved in the sale negotiation between the trustee and the selling shareholders."
"ESOP trustees are buying a collision business based on its earnings. They know how the business got there, and they know how the business will continue. They're not looking to change employees or change how the business is run. They need to deliver for their client - the employees in that trust. The trustee has fiduciary responsibilities to plan participants. They're not trying to rock any boats."
"Instead, employee owners gradually build value, and when they retire, they have the fair market value of their vested ESOP shares. It's a powerful, stabilizing tool to get employees to be more involved and care about the business."
Commercial Construction Coffee Talk Interviews Andrew Nikolai
Employee Ownership in Construction
"Construction industry ESOPs have really started to take off. It's our most active industry these days."
"One driver is the fact that skilled labor is so important in the construction industry. We hear from virtually all of our clients that it's challenging to find enough employees to support a business, let alone drive growth plans.
An ESOP can help with that. It drives staff retention. It helps you attract talent. It's a unique offering that gives employees the opportunity to gain an ownership stake. That helps builders and contractors set themselves apart from their competition.
Employee ownership is a strategic edge that can really benefit the business and drive overall performance to be better - especially if you're struggling with challenges on the labor front."