...an ESOP is a win-win-win situation.

—Business Review

1. Consideration

Preliminary Analysis

Initial review of corporate objectives and data (no fee charged). Determine if S corporation status is a viable alternative.

Preliminary Stock Appraisal

Estimate the company’s fair-market value.

Financial Analysis

Estimate long-range effects of an ESOP on company operations under a variety of circumstances.

Repurchase Obligation Study

Conduct an analysis to establish the future payout requirements of the ESOP.

Design Study

Determine features of an ESOP that will positively affect employee motivation while implementing corporate objectives.

2. Installation

Plan Implementation

Execute all documents and file all required forms to secure an I.R.S. Favorable Determination Letter. Appoint trustee.


Secure appropriate financing for a leveraged transaction and recommend alternatives for structuring an ESOP loan.


Introduce the ESOP and related plans to employees with an audio-visual presentation, a “plain English” summary and a Q & A session that targets crucial employee concerns.

Independent Stock Appraisal

Arrange for the transaction appraisal, strictly interpreting the independence requirement.

Repurchase Obligation Funding

Explore funding alternatives for private companies to buy back ESOP stock upon distribution.


Initiate record keeping services with experience and expert third-party administrators. Provide a comprehensive manual for day-to-day administration.

Professional Liaison

Maintain liaison with attorneys, accountants, investment managers and trust officers and commercial lenders to assure a smooth and efficient installation.

ESOPs have become more popular in the past few years as a way to raise capital for new and ongoing concerns, according to Ron Gilbert.

— Success Magazine

3. Operation


Annual independent appraisal to determine current fair-market value.


Monitor tax law changes and regulatory developments and amend documents as needed.


Assist in capital formation and/or acquisition of other companies, including subsequent leveraged transactions.

Repurchase Obligation Study

Periodically review and update repurchase obligation projections.


Assist in ongoing communication, including communication updates and annual employee meetings.


Maintain liaison and coordinate with other professional advisors.


Assist in day-to-day operation and interpretation of plan features.

4. Affiliated Services

Deferred Compensation

Assist in structuring non-qualified compensation programs to supplement or replace ESOP benefits for key employees.

Investment Management

Recommend investment advisors experienced in the “tax-free” rollover and other investment account areas for existing qualified plans.

Related Benefits

Assist companies in the design and implementation of other qualified plans, such as 401(k), and coordinate these related plans with the ESOP.