"...an
ESOP is a win-win-win situation."
-Business Review-
1. Consideration
Preliminary
Analysis
Initial review of corporate
objectives and data (no fee charged). Determine if S corporation status is a
viable alternative.
Preliminary
Stock Appraisal
Estimate the company's fair
market value.
Financial
Analysis
Estimate long-range effects
of an ESOP on company operations under a variety of circumstances.
Repurchase
Obligation Study
Conduct an analysis to
establish the future payout requirements of the ESOP.
Design Study
Determine features of an
ESOP that will positively affect employee motivation while implementing
corporate objectives.
2. Installation
Plan
Implementation
Execute all documents and
file all required forms to secure an I.R.S. Favorable Determination Letter.
Appoint trustee.
Financing
Secure appropriate financing
for a leveraged transaction and recommend alternatives for structuring an
ESOP loan.
Communications
Introduce the ESOP and related plans to employees with an audio-visual
presentation, a "plain English" summary and a Q & A session,
targeting crucial employee concerns.
Independent
Stock Appraisal
Arrange for the transaction
appraisal, strictly interpreting the independence requirement.
Repurchase
Obligation Funding
Explore funding alternatives
for private companies to buy back ESOP stock upon distribution.
Administration
Initiate record keeping
services with experience and expert Third Party Administrators. Provide a
comprehensive manual for day-to-day administration.
Professional
Liaison
Maintain liaison with
attorneys, accountants, investment managers and trust officers and commercial
lenders to assure a smooth and efficient installation.
"ESOPs have become more popular in the past few years as
a way to raise capital for new
and ongoing concerns, according to Ron
Gilbert."
-Success Magazine-
3. Operation
Appraisal
Annual independent appraisal
to determine current fair market value.
Legal
Monitor tax law changes and
regulatory developments and amend documents as needed.
Financial
Assist in capital formation and/or
acquisition of other companies, including subsequent leveraged transactions.
Repurchase
Obligation Study
Periodically review and
update repurchase Obligation projections.
Communications
Assist in ongoing
communication, including communication updates, and annual employee meetings.
Liaison
Maintain liaison and
coordinate with other professional advisors.
Administration
Assist in day-to-day
operation and interpretation of plan features.
4. Affiliated Services
Deferred
Compensation
Assist in structuring
non-qualified compensation programs to supplement or replace ESOP benefits
for key employees.
Investment
Management
Recommend investment
advisors experienced in the "tax-free rollover" and other
investment account areas for existing qualified plans.
Related
Benefits
Assist companies in the
design and implementation of other qualified plans, such as 401(k), and
coordinate these related plans with the ESOP.
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