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
