ESOP Feasibility & Transaction Analysis: Is an ESOP Right for Your Company?

An Employee Stock Ownership Plan (ESOP) offers compelling benefits to selling owners, companies and employees. ESOPs can create liquidity. They can address business succession. They can stimulate employee productivity and morale. And they can do all of that with significant tax benefits—making an ESOP an appealing choice for many companies. Even so, an ESOP isn’t the best solution for every organization.

At SES Advisors, we excel at helping business owners assess the feasibility of an ESOP for their unique situation. Leveraging our cross-disciplinary expertise—and our decades of experience specializing in ownership transition solutions—we consult with you to determine if an ESOP is a viable option for your company. We also work to obtain the highest price for you while protecting your company’s financial well-being and thereby preserving your personal legacy.

First Step: Feasibility Assessment

Your first step is a high-level feasibility assessment. Through this relatively simple, complimentary assessment, SES Advisors is able to determine if an ESOP may be an appropriate fit for your company. In performing the feasibility assessment, we consider a number of key factors, including:

• Age of the owner(s)
• Likely liquidity options
• Company value
• Borrowing capacity
• Size

SES Advisors offers an online tool to help you self-assess ESOP feasibility. Our qualifying questions may help you in deciding to take the next step.

Next Step: Transaction Analysis

Once you have determined that an ESOP is a viable option for your business, you can engage SES Advisors to complete a more in-depth transaction analysis and model how a transaction might be structured.

Because ESOPs are inherently complex, SES Advisors will help you understand how they work and what to expect at every stage of the process—from assessing feasibility to exploring and executing transaction alternatives.

Ready to Move Forward?

When you are ready to engage with SES Advisors for a complimentary Feasibility Assessment or a Transaction Analysis, please contact us. For more information about ESOPs, you may wish you to review some of our articles and introductory webinars.