ATLANTA — Flock Advisors, an M&A Advisory Firm for the credit and collections industry and provider of Falcon Funding that provides capital to middle market debt buyers, is pleased to announce its successful recapitalization of The CMI Group, Inc., a collection agency based in Carrollton, Texas.
Using a leveraged ESOP, the transaction essentially finances the buyout of CMI and transitions the ownership of the company over time from the existing shareholders to the management team and employees. Tom Stockton, owner and CEO, will maintain control of the company for at least the next five years as the CMI employees gradually vest ownership in CMI.
The new ESOP represents an expansion of the current retirement program, allowing the employees to be rewarded with ESOP retirement benefits as a result of their work. In addition, under the ESOP structure, employees will not be required to make monetary contributions to the plan. This is a major benefit at a time when many companies are cutting back on pension funding.
Tom Stockton commented:
“Flock Advisors handling of this transaction has been exemplary. I have known Michael Flock personally for over a decade. His knowledge of our industry, our business model and our specific needs and his network of capital sources added tremendous value to the whole process.
Flock’s partner, Don Hilbert, also provided creative financial modeling which when combined with the ESOP expertise of Todd Butler, a leading ESOP attorney from Holland & Knight, made a winning combination.”
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