ESOP Transaction Implementation

An ESOP transaction can be complex and therefore requires the expertise of financial advisors experienced in structuring them. ESOP transactions must pass the regulatory review of the Department of Labor and the Internal Revenue Service while also providing an economic return to the participants in the transaction. Through the experience gained in executing hundreds of ESOP transactions, we have developed the reputation and expertise to execute ESOP transactions of all sizes.

Our role in this area includes:

  • Analyzing company value based on comparable company analyses and discounted cash flow analyses while ensuring the company will be able to obtain a favorable opinion regarding fairness to the ESOP
  • Ensuring the company will have a capital structure that generates the optimal returns to all participants
  • Devising an equity allocation structure that stands up to DOL scrutiny and results in a favorable fairness opinion from the financial advisor to the ESOP
  • Engineering innovative securities such as convertible preferred stock or multiple classes of common stock that meet liquidity, return, and tax objectives of the ESOP, the selling shareholders, and outside investors
  • Assisting the client in its selection of ESOP trustee and related advisors
  • Negotiating on behalf of the sponsor company with the ESOP trustee
  • Coordinating other professionals involved in the transaction and helping manage the fees of those professionals
  • Ensuring that the transaction closes in an expeditious manner

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Executive Financial Services, Inc.
3350 Players Club Pkwy, STE 330
Memphis, TN 38125

Fax 901.682.8653

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