ESOP

The ins. The outs. The opportunities. We understand them all.

Employee Stock Ownership Plans (ESOPs) offer unique opportunities and present distinct challenges for business owners. Having installed and designed ESOPs for companies around the country, PCE can help you determine whether employee ownership is right for you and your business. And having completed more than $3 billion of ESOP transactions for privately held companies, we also understand how, when and why to sell any size company to an ESOP.

Before we begin any engagement, we take time to understand your goals and the unique aspects of your business.  We provide the stakeholders a complimentary preliminary analysis to help determine whether an ESOP is the right strategy for your business.

 

 

Feasibility Studies

Having the right game plan is key to executing a successful ESOP. During the ESOP feasibility study, our ESOP experts carefully consider the individual goals and objectives of each shareholder, as well as the specific facts and circumstances of your company.

This planning stage includes:

  • Preliminary valuation range for the company
  • Analysis utilizing numerous applications and combinations of ESOP tax benefits
  • Financial modeling to determine the optimal financing and entity structure for the ESOP transaction
  • Cooperative process including all stakeholders to ensure an ESOP transaction structure that addresses all shareholder and company goals

Our feasibility study, a thorough and effective process, enables us to give business owners a clear path forward to execute an ESOP that consistently satisfies your business objectives while setting the stage for an efficient transaction process.

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ESOP Formation

The versatility of an ESOP provides many business owners a path to strategically exit your privately-owned company in a tax-advantaged transaction while providing a valuable benefit to your employees.  

Our ESOP experts structure the transaction, negotiate value, and raise the necessary capital to complete the deal while always keeping your specific goals as the priority.

Managing the transaction is as much art as science. PCE dealmakers have the experience to efficiently move all parties through the transaction, making sure the deal is done correctly and closes on time. And when it comes to transaction management, our ESOP experts are as innovative as they are effective.

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Dual Track

PCE has pioneered the successful “Dual Track” sales process, in which the sale to a strategic buyer or private-equity group and the sale to an ESOP are simultaneously pursued.

This process allows business owners to evaluate and compare the most attractive liquidity alternatives in real time.

 

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Established ESOP

The intersection of our Investment Banking and ESOP Advisory expertise is advising ESOP-owned companies.  

PCE experts understand the different challenges that arise with transactions involving an ESOP and will ensure that transactions are structured and completed in a manner that satisfies your key business objectives.

The most successful ESOP-owned companies are those that actively manage and plan with their ESOP in mind.

Our ESOP advisors have the unique perspective of being fully engaged on ESOP transactions while having the firm perspective of the non-ESOP environment. We advise ESOP-owned companies on corporate finance and M&A matters while keeping the intricacies of the ESOP in mind.

Services to existing ESOP companies include:

  • Acquisition Advisory – advising on the acquisition of other companies
  • Corporate Finance – Raising capital for growth or refinancing
  • Transactions with ESOP – buying or selling stock involving the ESOP Trust
  • Sell-Side Advisory - selling the ESOP-owned company

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ESOP Valuation & ESOP Financial Opinions

In today’s business environment, corporate mergers, acquisitions, sales, financing and refinancing are subject to intense scrutiny by lenders, stockholders, regulators and the IRS.

ESOPs have the added regulation of the Department of Labor (DOL).

The opinion of an independent expert is critical for closing the transaction properly. Our professionals can help provide objective, independent Fairness & Solvency Opinions to ensure that you have the protection you need when executing your transaction.

PCE valuation and ESOP experts will:

  • Conduct a thorough evaluation of your business or assets
  • Evaluate the anticipated methods of consideration
  • Assess the financial outcome of the transaction
  • Review alternatives considered by the company

The result is an opinion that will stand up in any courtroom or boardroom and put fiduciaries in a position to make the most effective business judgments.

Our valuation experts also have deep experience in providing annual valuation updates for ESOP-owned companies. 

PCE's extensive involvement in ESOP transactions and third-party transactions give us the foundation to properly calculate fair market value for the trustees of the ESOP.

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Learn More About Valuations

Find out more about valuing your business through the free eBook: "The Ultimate Guide to Valuations." 

This e-Book breaks down the valuation methodologies in a straightforward format to help you understand the appraisal process and the reasons a valuation might be required.

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The Ultimate Guide to Valuations

Featured Article


Tax Reform Enhances ESOP Benefits

Because many provisions will favorably impact new ESOP formation and existing ESOPs, we expect to see more new ESOPs and more second or third stage ESOP transactions. 

Read More »

Main Contact(s)

David Jasmund

Orlando Office

407-621-2111

Mark Klopfenstein

Atlanta Office

678-596-6306

Will Stewart

Orlando Office

407-621-2124

Eric Zaleski

Chicago Office

847-239-2466