ESOPs are often used to transition ownership in consulting and engineering firms from the current owners to the next generation of employee/owners. These transactions are often used as a backup to a third-party transaction.
A sale to, or merger with, a strategic acquirer could provide the highest valuation and broadest transaction possibilities among all liquidity options.
A private equity sponsored “recap” offers financial security, equity retention, and value gains through deleveraging, accretive add-on deals, and a potential increase in the exit multiple.
An initial public offering enables the company's shareholders to retain equity and provides some liquidity to majority shareholders.