Steps to Establishing an ESOP

  • Feasibility Study – can be commissioned formally or performed internally to determine if an ESOP can assist the company in achieving stated objectives, the technical aspects of the ESOP such as number of shares, leveraged or non-leveraged, and significant funding issues such as loan repayment and share repurchase obligation.
  • Appraisal to determine company’s fair market value
  • Financing – commercial lender or private transaction, loan structure such as term and rates, collateral
  • Design and implementation – determine best practices for your company.
  • Written plan document required. Amendment to by-laws or corporate charter. Establish distribution process. File for IRS Approval.
  • Communication to employees

Additional Services Include: