ESOP
Transactions
Providing
Ownership Stake
An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan (like a 401(k)) that buys, holds and sells company stock for the benefit of employees, providing them with an ownership stake in the company. It may also be the perfect exit strategy for a business owner. Please review a detailed description of the many benefits an ESOP provides to employees, management and the company itself.
The ESOP Transaction
Process
As the company's ESOP advisor, CFAW evaluates and implements ESOP transactions in the following ways:
Planning
- Prepare feasibility analysis and transaction structuring
- Develop and structure management incentive plans
- Estimate value and transaction capacity
Implementation
- Identify and screen ESOP trustees and appraisers
- Prepare and assist with due diligence
- Solicit and negotiate with providers of senior, junior and equity capital
- Negotiate with ESOP trustees
- Close the transaction
