ESOP Blog

Danielle Montesano Joins Corporate Finance Team at Duff & Phelps

Duff & Phelps, the global advisor that protects, restores and maximizes value for clients, recently announced the addition of Danielle Montesano as a managing director to its Corporate Finance team. Ms. Montesano is part of the ESOPMarketplace.com family of ESOP professionals and brings a background rich in varied financial experience to her new position at Duff & Phelps. She is based in Duff & Phelps’ Chicago office.

With more than 20 years of industry experience, Ms. Montesano advises clients on corporate acquisition and sale transactions involving restructuring, valuing and financing public and private securities. She has expertise in matters involving corporate governance, valuation, ERISA, tax, regulatory compliance, executive compensation and employer securities.

Prior to joining Duff & Phelps, Ms. Montesano was the Executive Vice President of the Fiduciary Advisory Group at First Bankers Trust Services.

About Duff & Phelps

Duff & Phelps is the global advisor that enables clients to protect, restore and maximize value for clients in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues. Our clients include publicly traded and privately held companies, law firms, government entities and investment organizations such as private equity firms and hedge funds. We also advise the world’s leading standard-setting bodies on valuation and governance best practices. The firm’s nearly 2,500 professionals are located in over 70 offices in 20 countries around the world. For more information, visit www.duffandphelps.com.

M&A advisory, capital raising and secondary market advisory services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory, capital raising and secondary market advisory services in the United Kingdom are provided by Duff & Phelps Securities Ltd. (DPSL), which is authorized and regulated by the Financial Conduct Authority. M&A advisory and capital raising services in Germany are provided by Duff & Phelps GmbH, which is a Tied Agent of DPSL. Valuation Advisory Services in India are provided by Duff & Phelps India Private Limited under a category 1 merchant banker license issued by the Securities and Exchange Board of India.

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An Elegant Administration Services Platform Solution for 401(k) and ESOP Plans

Every ESOP looks for efficiencies to improve productivity on the administration side of the business and to enhance communication with employees. So you need to consider an Administration Services Platform that integrates your employees’ 401(k) and ESOP information. It is put together by Jackie Salmon and her team at OneAmerica®, an Indianapolis-based financial services company, that can trace their roots back over 140 years.

OneAmerica offers a solution to meet your needs and is led by Jackie Salmon, field vice president of consulting service. Jackie, with 27 years of ESOP experience and a member of our group since 2015, has taken the time to break down the benefits of this new Administration Services Platform.

The ESOP advantages OneAmerica provides are:

  1. One relationship manager for both the ESOP and 401(k) plans
  2. One plan manager for both the ESOP and 401(k) plans
  3. An optimized, responsive website
  4. Combined statements
  5. Participant call center that is based in the U.S.
  6. Consulting team that averages more than 20 years of ESOP and employee benefits experience per person
  7. A reputation of service and access that larger carriers simply cannot provide with a company rated in the top 8 percent of all insurance companies

Want to cut to the chase and speak to Jackie Salmon and her ESOP consulting team now? Pick up the phone and call 317-285-6540 or send an email to jackie.salmon@oneamerica.com to schedule an appointment.

Leaning on the vast actuarial and employee benefits experience of the ESOP team, the design and depth of this solution weaves the power of administrative efficiency with the kind of industry-leading support that you have come to expect from OneAmerica.

Individual Benefits of the Integrated Administration Services Platform offered by OneAmerica.

OneAmerica can accommodate servicing multiple plan types while offering a single experience for plan sponsors and participants. Their technology was built for the specialized needs that ESOP and 401(k) plans require.

Consider the following advantages:

  • Same Relationship Manager for Both Plans

Having one central point of contact with a wealth of experience in both ESOP and 401(k) benefits is an efficiency that is included in the Administration Services Platform approach. Having a single individual available to you that understands the scope and detail of your company’s interaction with employee ESOP benefits and 401(k) plans and can assist you in answers to questions is invaluable.

  • Same Plan Manager for Both Plans

Having one Plan Manager includes some of the same advantages we spoke about regarding having a single Relationship Manager for both ESOP and 401(k) plans. There are efficiencies in communication and narrowing of administrative overhead that allow for more stability and a streamlining of needed contacts. If needed, your Plan Manager can call in high-level consultants for answers to the big questions of distribution, diversification or re-shuffling.

  • Employee-Facing Website

Along with the Integrated Administration Services Platform comes a web portal that allows your employees, once logged in, to see everything from the value of their ESOP holdings to the performance of their 401(k). This kind of instant availability of information gives employees confidence and further cements their feelings of ownership in the company and control of their own futures.

  • Combined Statements

While separate statements were always made available to employees of ESOP companies, the combination of these statements within the Administration Services Platform and the instant availability of account balances within the dedicated web interface simplifies the process. By utilizing your web portal, your employees can access the vital information in both their ESOP and 401(k) plans at the same time.

  • Call Center for Both Plans

Let’s face it. Employees will always have questions about their plans, and your office doesn’t have time to field those calls. OneAmerica has solved this issue in a way that gives employees someone knowledgeable to answer statement questions or talk about eligibility and ESOP payouts so your administrative staff can continue their work uninterrupted.

  • Consulting Team at Your Service

The OneAmerica ESOP consulting team averages more than 20 years of experience per person, and has helped hundreds of ESOP plans to understand their ESOP options and their employee benefits. They understand your business’ unique needs and tailor planning to give you options you can be confident in.

  • Ratings Strength.

OneAmerica has been recognized for overall strength from A.M. Best, and Standard & Poor’s, the industry’s leading credit rating agencies. These agencies provide independent, third-party evaluations of the financial strength and claims paying ability of the insurance companies of OneAmerica. (Read more on the OneAmerica website.)

Why Bundle the Administration for 401(k) and ESOP plans into the Integrated Administration Services Platform offered by OneAmerica?

  • Having multiple vendors instead of a single point of contact can create confusion and block the flow of needed information.
  • Part of the fiduciary responsibility of your company is employee education. Centralizing and streamlining this educational process gives the employees one source of accurate information rather than competing sources.
  • Compliance testing is a requirement. By bundling the plans with the OneAmerica, you can benefit from the inherent efficiencies of integrated testing as the plans exchange information for specific required tests.
  • The Integrated Administration Services Platform allows for a single provider to deal with the processing of distributions in the unfortunate event of an employee death, or separation from the company.

 

Get Streamlined Employee Benefits Administration and Simplify Your Processes with the Administration Services Platform.

Enjoy the simplicity of dealing with just one provider for your ESOP AND 401(k) plans!

OneAmerica gives your employees the ability to access their plan balances and details online or over the phone through their knowledgeable U.S. based call center!

Want to know more? Call Jackie Salmon and the OneAmerica ESOP consulting team now at 317-285-6540 or send an email to jackie.salmon@oneamerica.com to schedule an appointment.

 

*OneAmerica is the marketing name for the companies of OneAmerica.

Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice. ESOP Marketplace is not an affiliate of any OneAmerica company. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

 

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ESOPs and Divorce

So, you’re facing a divorce – something you never thought you’d have to deal with. It seems you’re spending more time in meetings with lawyers than you are sleeping these days. It’s all so complicated.  Trying to equally divide out community property and accumulated marital investments is incredibly difficult – especially when there is a privately-owned business involved comprising a large portion of the value of the community property.

What do you do when one spouse wants to remain at the helm of the business and the other wants to be cashed out of their share?  Sometimes there just isn’t enough liquid capital for an off-the-cuff buyout.  In that case, what’s the solution?

It can seem to be an unsolvable problem when the divorcing spouses cannot come to an equitable decision.  Selling half of the business usually is not an option, but at the same time, you can’t take blood from a stone.  You just don’t have the cash for a buyout that would allow a clean parting of the ways.

Is there a compromise that can work for both parties?

The answer, thankfully, is yes.

An Employee Stock Ownership Plan might be the perfect solution.  There are definite benefits to considering an ESOP in spousal asset division.  From a business perspective, choosing this option can provide significant bonuses for both parties.  It is a flexible answer to a challenging problem.

To find out more about how an ESOP can help you with dividing your marital business assets equitably, check out our blog at http://www.bsllp.com/esops-can-provide-liquidity-to-facilitate-division-of-a-family-owned-business-upon-divorce.

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EBOOK – ESOPs: Myths, Methods, and Mistakes

  • How it works
  • The ins and outs of ESOPs
  • Common misconceptions explained
  • Tips and tricks
  • Risks vs. rewards
  • How to avoid common mistakes

As baby boomers toe the retirement line, company ownership and succession planning becomes a necessary topic on the discussion table. There isn’t always an easy answer here – all business owners have different priorities when it comes to handing over the reins – but some options are more elegant and effective than others. ESOPs, or employee stock ownership plans, provide a compelling alternative, selling company ownership to employees while also offering an avenue for corporate financing and business perpetuation.

Click to download the full eBook in PDF format.

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EBOOK – ESOPs: Myths, Methods, and Mistakes

  • How it works
  • The ins and outs of ESOPs
  • Common misconceptions explained
  • Tips and tricks
  • Risks vs. rewards
  • How to avoid common mistakes

As baby boomers toe the retirement line, company ownership and succession planning becomes a necessary topic on the discussion table. There isn’t always an easy answer here – all business owners have different priorities when it comes to handing over the reins – but some options are more elegant and effective than others. ESOPs, or employee stock ownership plans, provide a compelling alternative, selling company ownership to employees while also offering an avenue for corporate financing and business perpetuation.

Click to download the full eBook in PDF format.

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ESOP – Five Disastrous Mistakes

No matter how much you love your work, there comes a time when you need to slow down a little and start considering retirement. Your business has functioned for many years with you at the helm, and it’s hard to imagine a time when you are not in full control.  And yet, you know you have to plan for the future of your business, and that future involves a successor.

It’s scary thinking about moving on and leaving your “baby” in the hands of another.  There are a lot of options to consider, and you’re scared to make a mistake.

There are definitely pitfalls to avoid in setting up your business succession plan.  You’ve eliminated most of them but putting in the hours and the research to ensure you’ve chosen a strategy that is the best fit for your thriving business.  That’s a great first step.  And that first step is making use of ESOPs to help take your company into the future. You can definitely see how this particular plan will benefit all parties if it is implemented correctly.

But you do worry about how smoothly transitioning ownership will go.  You want to put the same effort into your business succession plan as you did into the building of your company.  It took great care to get you where you are today, and you are committed to putting that same care into its tomorrow.

In this article, you will learn about five mistakes to avoid as you incorporate ESOPs into your business.

Click to read the rest of the article on the GBH website.

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Get Your ESOP to the Finish Line in 5 Steps

So, you’ve been giving a lot of thought to your business succession plan, and you’ve put many hours and sometimes sleepless nights into the research process. There are a lot of options to consider, and you’re starting to formulate a strategy that feels right to you.

It takes a long time to wade through the various scenarios that might be best suited to your personal business situation.  Unfortunately, retirement planning takes just that—a ton of planning!  But you’re off to a great start—you know that an ESOP is a right fit for you.

ESOPs provide a wonderful way for a CEO to transition from a very active role to a more passive one.  Employees opting into an ESOP gain a real feeling of ownership, pride, and teamwork.  It’s a win-win situation for all involved.

Seeing the benefits to all parties involved was easy for you.  But trying to actually implement ESOPs into your business?  Not so much.

It’s easy to become overwhelmed by what appears to be an insurmountable task.  The sheer amount of logistical paperwork seems like a nightmare!  But like anything worth tackling, it becomes less intimidating when broken down into simple, manageable steps.

In this article, you will discover five straightforward steps to take your ESOP from just a concept to a reality.

Click to read the rest of the article on the GBH website.

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Myths about ESOPS

Business succession planning is a hot topic amongst enterprise owners today. You spent a lifetime building a company and took great care to make it the success that it is. You want to take the same amount of care in planning its transition from you at the helm to your chosen successor/s taking full control.

You’ve done your homework—you know what options are available to you.  You know you don’t want to sell the business, and you also don’t want to close it.

And you’ve taken care to choose someone you really feel just “gets” your business and can take it into the future.

One of the options you’re strongly considering is an Employee Stock Ownership Plan or ESOP.  But… you’re not entirely certain how it works or even if it’s the right plan for you.

You have a lot of questions.  Will this type of plan be attractive to my employees?  Will I have to give up too much control too soon?  Would it be fiscally wiser for me to consider an outright sale to a third party?  How much of my company’s confidential financial records do I have to expose to shareholders?

These are good questions.  A wise company owner considers every angle before making such an important decision.

Check out our blog at http://www.gbhcpas.com/blog/esops-debunking-the-top-5-misconceptions to discover the five most common misconceptions about ESOPs.

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Facing retirement, but not sure of the next steps for business transition?

You’ve spent your life building your business. You wear your successes and life lessons on your sleeve with pride. Yet with each ticking of the clock, you realize that time is passing by and that you must prepare for a future where you take on a different role in regard to your company as you pass the reins to your successor.

Where to start?  That’s the big question!  The idea of trying to prepare to leave something that you’ve invested so much into is tough to wrap your mind around.  Breaking it down into manageable steps can seem overwhelming.

The truth is there is that there is no cookie cutter answer.  Every business must prepare for its founder(s) to move away from an active role and for new leadership to step in.  But what this looks like for each company will be as unique as the products and services each offers.

In seeking the right exit strategy for you, there are many options to consider.  Some are better suited to your company’s specific needs than others.  Here you will find a list of four directions forward for your business on the road to a successful transition as you prepare for your retirement years.  Read more at: http://www.gbhcpas.com/blog/4-valuable-strategies-for-business-succession-planning

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Looking forward to retirement, but not sure what to do with the business?

As much as you love your businesses, you must admit that retirement is an attractive idea. You dream of relaxed mornings sipping coffee by a roaring fire or leisurely reading the newspaper on a sunny day with nothing calling us to abandon your leisure and get to work.

It can happen.  For many of us, it will happen soon.  But before we can fade into the glorious sunset of retirement, we have a job to get done.

We have to deal with the next step – what to do with the business.

Maybe you can’t yet imagine your business without you at the helm.  It’s definitely hard to do.  You’ve invested your life in the development of this entity.  But whether you have five years or fifteen years before retirement, it’s important to start putting processes in place to ease the transition from a corporation you are 100% hands on with to a business that will become the responsibility of your successors going forward.

You need to start developing your exit plan.

No two businesses are exactly the same, and the design of your exit strategy will be as unique as the service that you provide.  Here are four simple business succession concepts to consider in preparing your retirement plan.

Read more at http://www.gbhcpas.com/blog/4-valuable-strategies-for-business-succession-planning

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