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Pro-Mark Services Sells to ESOP

Pro-Mark Services Sells to ESOP

Lazear Capital is pleased to announce another successful ESOP formation transaction for Pro-Mark Services. Lazear Capital recently acted as the exclusive financial advisor for Pro-Mark Services, Inc., facilitating the sale of the company in a 100% ESOP transaction. An ESOP, or employee stock ownership plan, is an employee benefit plan that transitions company ownership to the employees while providing financial flexibility and maximal tax advantages for the seller.

Based in Fargo, North Dakota, Pro-Mark is a general construction contractor working primarily in the military and federal agency space. When Pro-Mark owners Connie and Kyle Berg engaged Lazear Capital as their investment banking advisor, Lazear Capital began with a detailed feasibility analysis that modeled the expected timing and cash flow amounts resulting from an ESOP transaction. The Lazear Capital team presented various options, including a tax-deferred/tax-free sale of the business via a 1042 election.

The Bergs agreed that an ESOP was the best choice for them. "We were able to check a lot of boxes on issues that were also important to us, such as rewarding our dedicated employees, preserving jobs in Fargo, and retaining the culture of excellence we worked hard to create at Pro-Mark."

Pro-Mark continued to deliver strong results throughout the process, which kicked off in March of 2020 when the country was shutting down due to the COVID-19 pandemic. Moving forward, Connie will be stepping down from her role as president, but Kyle will remain active in the business, working closely with Chad DuBois, the new president, and Mandy Grant, the secretary-treasurer.