30Years of Consulting Experience has Taught Us the Answer to Every ESOP Question is ...
"It Depends."

 

“It depends” upon individual and corporate objectives, the age and ownership level of the ESOP, corporate cash flow and earnings, corporate status (C or S, public or private), etc.

While the flexibility of the ESOP can be a substantial advantage in structuring ESOP transactions and ongoing ESOP operations, flexibility is a two-edge sword. It challenges the ESOP company’s board, management, and trustee to continually review ESOP operations in light of changes in shareholder’s objectives, corporate operations, and legal and regulatory changes. The ability of S corporations to sponsor ESOPs requires serious examination.

ESOP Services, Inc. is uniquely qualified to assist ESOP companies in determining how to best achieve their objectives. 

Key issues include:

  1. Corporate governance
  2. Additional equity incentives for key management and/or board members
  3. Acquisition or Divestitures utilizing an ESOP
  4. Election of S corporation status
  5. The impact of S corporation distributions on ESOP allocations and debt repayment
  6. Establishing a flexible ESOP distribution and stock repurchase policy that addresses
    • Dilution
    • Company cash flow
    • Adequate security requirements
    • Diversification elections
  7. Administrative compliance & policies
  8. 401(k)/ESOP combinations
  9. Valuation of closely held stock
  10. Designing plans and policies that exceed normal contribution limits
  11. Charitable giving
  12. Termination of an ESOP
  13. Selling an ESOP company

 

The list goes on and on, but if you are charged with operating an ESOP, you already know that.

Can we be of assistance to you? 

A call, fax, or e-mail allows us to determine the extent to which our services match your needs. If we cannot help, we will recommend someone who can.

 

 

East Coast Office
251 Albevanna Lane
Scottsville VA 24590
Phone: 434-286-3130
esop@esopservices.com		 West Coast Office
P.O. Box 420563
San Diego CA 92142
Phone: 858-292-4819
paige@esopservices.com