Employee Stock Ownership Plans (ESOPs)
As nationally recognized experts in this specialized field, we have been instrumental in establishing ESOPs for clients in a broad range of industries.
We provide a full range of services for companies considering an ESOP, and for companies that have ESOPs in place. Our services are designed to provide shareholders with the information they need to make ESOP-related decisions and to ensure their ESOP transactions are structured in compliance with the requirements of the Internal Revenue Service and the Department of Labor.
Business Valuation
The stock valuation is the logical first step when considering an ESOP as it establishes the selling price for the shares of stock to be sold. Subsequent valuations are conducted in compliance with federal guidelines, and provide ESOP participants with a yearly determination of the value of their holdings. Feasibility Study
The feasibility study determines the overall framework for the initial transaction, identifies the structure that will optimize value, and projects the impact of the proposed ESOP on the company’s profits and cash flow. Existing ESOP companies rely on our feasibility studies to develop the framework for second-stage transactions. Financing Support
Financing support consists of obtaining the most competitive financing package available in the marketplace. We prepare financing proposals and submit them to the various lending institutions with which we maintain on-going relationships. We meet with lenders to discuss the nuances of the transaction and its impact on the company’s financial condition, profitability and cash flow. And we assist in negotiating the terms and conditions of the financing package. Fairness Opinion Fairness opinions are provided to the Trustees of the ESOP to provide needed assurances that the ESOP is not paying more than “adequate consideration” for the stock it is acquiring, and that the transaction is fair from a financial point of view. We also render fairness opinions when an employee-owned company is involved in a merger or acquisition. Representative ESOP Transactions
Blitz Media, Inc.
MA
Marketing and Media Strategy
Brockway-Smith Company, Inc.
MA
Building Supply Distributor
Darmann Abrasive Products, Inc.
MA
Abrasives Manufacturer
Fleetwood Fixtures, Inc.
PA
Manufactures Store Fixtures
GeoInsight, Inc.
NH
Environmental Engineering Consultants
Hypertherm, Inc.
NH
Manufactures Plasma Cutting Machines
Jack Moore Associates, Inc
MA
Construction/Drilling Parts Distributer
Newport Harbor Corporation
RI
Hotel, Restaurant, Resort Operator
Pariveda Solutions, Inc.
TX
Technology Consulting Company
Spaulding Brick Company
MA
Brick Distributor
Walker Construction, Inc.
VT
Concrete and Site Excavation