Assessment

The first step in evaluating an ESOP is to determine whether the ESOP is the right match for a business owner's personal, financial and corporate goals.

Because ESOPs can create liquidity and accomplish business succession while stimulating employee productivity and morale, they are an appealing choice for many companies.

However, the complexity inherent in the creation and management of an ESOP must be considered. For this reason, assessing the feasibility of an ESOP transaction at your company requires careful analysis by professionals with ESOP knowledge and experience.

Some general parameters we consider when assessing a company's fit for an ESOP include:

• Profitability
• Size
• Ownership structure
• Management depth and experience
• Primary financial and personal goals

If you have heard about ESOPs and would like to learn more, SES Advisors can help you determine if an ESOP is an appropriate succession strategy to consider. To begin, either call Jim Steiker at 215-508-1600 or Bob Massengill at 973-540-9200. You can also complete and submit the online feasibility questionnaire. Within 72 hours, we will call with our preliminary analysis on ESOP feasibility and possible next steps.

See our Case Studies