CSG Partners Helps Internal Data Resources with ESOP Buyout

IT Staffing Company now Employee Owned

Mar 16, 2011, 08:18 ET from CSG Partners, LLC

NEW YORK, March 16, 2011 /PRNewswire/ -- CSG Partners, LLC, the New York-based boutique investment bank, announced that it advised Internal Data Resources, Inc. (IDR) on its recent sale to an Employee Stock Ownership Plan.

IDR is a premier provider of IT staffing services to clients nationwide. The company is headquartered in Atlanta, and operates additional offices in Dallas, Nashville, and Washington, DC. Eric French, the selling owner of IDR, will remain as President following the ESOP buyout.

The CSG Partners team was led by George Thacker and Alex Mumblat. Thacker commented, "ESOPs primarily are used as a tax-efficient exit strategy for business owners. With IDR, however, the owner wasn't looking to exit the business and he wanted to use the ESOP structure to aggressively grow the company."

Eric French added "The fastest way to achieve excellence is to adopt the beliefs and behaviors of successful people, and I've seen the success of employee-owned companies.  At IDR, we are proactive and intensely focused on growth. The ESOP is an ideal strategy to inspire our employees and help IDR achieve its goal of being the best IT staffing company the world has ever seen."

The company's accounting firm, Frazier & Deeter LLC, also worked on the ESOP transaction. JR Miller, a partner with Frazier & Deeter, commented, "We were continually impressed with how CSG Partners successfully quarterbacked the ESOP transaction, from their detailed analytics, structuring, and negotiating. Also, the ESOP was an ideal strategy for IDR because the tax savings will help facilitate its growth."

The IDR transaction continues the trend of staffing companies implementing ESOP buyouts. In addition to IDR, CSG Partners recently closed ESOP transactions for Penmac Staffing (Springfield, Missouri) and Burnett Staffing (Houston, Texas).

About CSG Partners

CSG Partners, LLC is a boutique investment bank specializing in ESOPs, mergers and acquisitions, and capital advisory services for middle-market companies. Our clients have spanned the full middle-market spectrum, with values ranging from $10 million to $500 million. Founded in 2001, the firm has built a reputation of having the nation's preeminent ESOP investment banking practice. The firm has closed over 80 ESOP transactions for companies with an aggregate value exceeding $5 Billion. CSG Partners operates from offices in New York and San Francisco. More information on the firm can be found at www.csgpartners.com.