Process Map

The foundation of our site is to help the business owner and their advisors navigate through the ESOP process. We have designed process map to identify the key activities and milestones to help move the effort forward quickly and painlessly. Below is an example version of our map, without the interactive features such as creating a project, adding advisors, and managing the documents using your virtual file sharing application such as Drop Box.

A. Advisor Selection

Weeks 1-4

Explore Alternatives
Search for Advisors
Owner Selects Advisory Team
Feasibility Study
Set-up Your Virtual File Sharing Application Such as Drop Box
Engagement Letters are Signed
Consultant Selected

B. Feasibility Study

Weeks 5-13

Company’s last 3 Yrs Financials and Tax Returns
Cash flow Projects for 3-5 years
Organizational Chart with Family Members Identified
Company Census
Ownership Structure
Ownership Goals
Estimated Stock Price
Valuation Analysis
Compensation Analysis
Tax Analysis
Legal Analysis
Advisor Additions
Estimated Costs for Completion

C. GO or NO-GO

Weeks 14-15

Valuation Issues
Compensation Issues
Tax Issues
Legal Issues
Owners’ Commitment
Costs Issues
Decision to Go

D. Due Diligence

Weeks 16-22

Update and Launch your ESOP Virtual File Sharing Application Such as Drop Box
Complete Valuation
Develop Plan Design
Finish Tax Strategy
Employee Communication Plan
Compensation Plan
Repurchase Obligation Study
Select Trustee
Select TPA
Select Funding Source
Select Wealth Advisor

E. Negotiations to Close

Weeks 23-26

Final Valuation Issues
Compensation Issues
Tax Issues
Legal Issues
By-Law Commitment
Banking or Funding Issues
Board and Ownership Approval

F. After Closing

Weeks 27-45

Management Team Training
Board of Director Formation
ESOP Committee
Annual Shareholder Meetings