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The McLean Group advises JTG on its ESOP Buyout
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The McLean Group is pleased to announce that we provided advisory services on this completed engagement.

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The McLean Group advises JTG on its ESOP Buyout

MCLEAN, VA – February 25 , 2016 –  JTG, Inc. (JTG) completed an employee stock ownership plan (ESOP) buyout led by management. JTG explored a range of transaction alternatives, and, through a competitive process, selected an ESOP as the optimum transaction structure. The McLean Group’s Defense, Government Services and Intelligence (DGI) practice served as the exclusive transaction advisor to JTG.

Founded in 1995 and headquartered in Vienna, VA, JTG provides end-to-end solutions to government and commercial customers requiring deep knowledge of global intelligence and the agility to respond to a rapidly changing world. JTG offers four interconnected business lines: global intelligence, analysis, training and language services. The Company’s capabilities directly support customers and programs critical to national security initiatives.

“An ESOP ownership structure was the option that made the most sense. It allowed us to invest in the future of the employees while also promoting organizational stability. We are excited to see the company grow in the hands of the people that helped make it what it is today,” said Ahmed Shehata, President of JTG.

Alternative transaction structures, such as ESOPs, are becoming increasingly prevalent in the ADG market. Whether an ESOP is the right solution for a specific company depends on the characteristics of that company and the situation. ESOPs’ potential strategic benefits to federal contractors, include:

• Generally favorable reception from government customers;
• Strong employee retention and a powerful recruitment tool;
• Often less disruptive process than traditional M&A processes;
• Possible economic benefits from incorporating ESOP expenses in rate structure.

JTG views its ESOP transaction as a strong benefit to its business and a strategic advantage moving forward. Former JTG CEO, Muriel Jerome-O’Keeffe, will remain an employee and member of the Board of Directors.

ABOUT THE MCLEAN GROUP

The McLean Group is a 25-year-old boutique investment bank and financial services firm focused on the Defense, Government & Intelligence (DGI), Security, Critical Infrastructure and Maritime markets. Our 60+ professionals bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial creativity with operational expertise. Whether we are providing transaction advisory, valuation opinions or growth capital, our services are unmatched in these core markets.

JTG - ESOP - The McLean Group
The McLean Group