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.
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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
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