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Funding Vulcan by selling 49% of ULA to a leveraged ESOP

May 21, 2015

Funding Vulcan by selling 49% of ULA to a leveraged ESOP

How much is ULA worth? you could sell 49% of the company to a leveraged ESOP and use the cash to fund Vulcan.ESOP’s being tax-free since they are pension funds under ERISA would mean that 49% of cash flow owed to the ESOP would be tax-free income to ULA.Or if Boeing and Lockheed martin want out then all of ULA could be sold to an ESOP in which case the entire company would be tax-free

http://www.esopassociation.org/explore/how-esops-work/learn-about-esops/leveraged

https://www.venable.com/files/Publication/07202433-825d-4b78-a53a-65955f6e8ae6/Presentation/PublicationAttachment/6d36f00b-0286-464f-bb16-6de02fe16f40/Establishing_a_Leveraged_ESOP.pdf

http://www.delashmitlawgroup.com/?page_id=32

ESOPS do mean filing a lot of public information with the IRS (ERISA) and the SEC Private companies can have ESOPS but are no longer private and a member of a ESOP can fill a shareholder lawsuit if management makes a bad call.

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