Capstone Headwaters Expands into ESOP Advisory with the Addition of BTA

June 27, 2019

Boston, MA - Capstone Headwaters, a leading middle market investment banking firm, announced today that it has expanded the firm’s corporate finance capabilities to include ESOP advisory services. This is the latest move in the firm’s ongoing efforts to offer middle market business owners and investors an end-to-end solution.  Initially founded as an M&A advisory boutique, Capstone Headwaters now offers integrated and complementary services via several fully-dedicated groups, including Corporate Restructuring, Debt Advisory, Equity Placements and ESOPs, among others.

Capstone Headwaters ESOP Advisory - BTAThe migration into ESOP advisory services was completed with the addition of Business Transition Advisors (BTA), a long-standing leader in the ESOP industry.  The firm, which is lead by Fred Thomas and Roy Farmer, has executed ESOP transactions valued at over $5.2 billion. Now part of Capstone Headwaters, BTA will help the firm’s clients assess the attributes and viability of an ESOP, and if appropriate, execute the transaction from start to close.

“Not every business owner seeking personal liquidity desires to sell their company to either a strategic acquirer or private equity firm,” commented John Ferrara, Founder & CEO of Capstone Headwaters. “ESOPs can represent an attractive alternative for business owners to transition their company to the next level of leadership and their employees in a tax efficient manner,” Ferrara added.  “We are thrilled that BTA joined our firm to lead these efforts. They are one of the best teams in the industry.”

 “Roy Farmer and I are excited about the opportunity to offer increased services to our clients and referral base” Fred Thomas, Co-Founder & Managing Director of BTA.

ABOUT ESOPs

An Employee Stock Ownership Plan (ESOP), is a qualified, defined contribution employee retirement plan designed to invest primarily in employer stock of a sponsoring company.  It allows business owners to sell all or a portion of their company to a ready and willing buyer at full fair market value while typically allowing the business owner to retain operational control and defer all capital gains taxes, while establishing a completely income tax-exempt entity.

For more information about ESOPs and/or to discuss if an ESOP transaction might be appropriate for your company, please contact us.