ESOP Design

SES ESOP Strategies can help you build the best solution for your business.

SES ESOP Strategies uses a feasibility assessment and transaction analysis to help you determine whether an ESOP is an appropriate fit for your company and if so, how an ESOP could be structured to best suit your goals. Once you have decided to implement an ESOP, our multidisciplinary team offers comprehensive services and support to guide you through the design, implementation and maintenance of your ESOP.

The process of designing and implementing your ESOP includes a number of critical steps:

Designing the plan

Like other qualified employee benefit plans, ESOPs must comply with applicable laws, including ERISA. Within the specified legal rules, plan sponsors must make important decisions regarding the plan terms to make sure that the ESOP fits well into the company’s corporate culture, cash flow needs and strategic goals. Legal counsel provided through our affiliated law firm, Stevens & Lee, prepares the required ESOP plan documents, including the agreement with the ESOP Trustee.

Obtaining financing

An ESOP is the only benefit plan permitted to borrow money. Your company may expect to complete a transaction where the ESOP borrows money to purchase stock, either from the company or from a selling shareholder. A leveraged ESOP transaction requires compliance with certain legal requirements. In addition, the company may need advice about how best to obtain the necessary financing for the transaction, whether from the seller or from an outside lender.

Structuring an effective transaction

Once you have decided to effect an ownership transition using an ESOP, SES ESOP Strategies can help you structure a transaction that will best meet the goals of the company and the selling shareholders. SES ESOP Strategies professionals are knowledgeable about all aspects of the ESOP transaction, including the parties involved, the timing and the steps.