That Age-Old Question: Is an ESOP Right for Me?
To sell to an ESOP or not sell to an ESOP, that is the question. And the answer lies within an expertly prepared feasibility study. While ESOPs are a fantastic tool for exiting business owners, it is not a one-size-fits-all solution. Whether it’s for an initial sale to the ESOP or for a subsequent sale to an existing plan, an ESOP is best utilized when its installation is based on sound decisions after thorough and thoughtful research.
R.K. Schaaf Associates, Inc. (RKS) was founded in 1975 by Rainer K. Schaaf primarily to provide ESOP sponsors with a third party recordkeeping firm that focuses on the unique nuances relating to these plans. Although Mr. Schaaf has since retired, RKS continues to focus on the technical and operational aspects of ESOPs. Our staff is dedicated to providing our clients with all the information they need to make informed decisions – including the decision that an ESOP may not be right for them.
RKS can help companies determine whether an ESOP is feasible by preparing an insightful examination of the impact of the proposed transaction on the company, its employees, and the ESOP. Corporate structure, demographics and exit strategy all need to be “put under the microscope” so to speak before implementing an ESOP. RKS will prepare a Feasibility Study tailored specifically to address a client’s needs, and offers three different levels of study to accommodate those needs, one of which provides a side-by-side comparison of an ESOP versus other major liquidity or corporate financing alternatives, including a private auction, negotiated sale, debt-recapitalization, or liquidation.
In summary, the most important step the company can take before implementing an ESOP is to analyze whether the plan would be feasible. Once an analysis is completed and it is determined an ESOP is feasible, a company is likely to experience many years of enhanced employee productivity, less turnover and a greater bottom line. The horror stories you may hear about ESOPs are usually a direct result of poor planning and research in the initial stages. Our goal is to make sure that companies thoroughly plan for their ESOP so that it will be a success story.
For more information about R.K. Schaaf Associates, Inc., visit our website at www.rkschaaf.com or at www.esopmarketplace.com. For more information about our feasibility studies, contact Wendy Lankes at (800) 678-8337 or firstname.lastname@example.org.
Acclaro Valuation Advisor Aaron Pryor Listed on ESOPMarketplace
Aaron Pryor, expert ESOP valuation advisor and associate at industry leading valuation firm Acclaro, now has a professional listing on ESOP Marketplace. We are happy to feature Mr. Pryor on our site, as part of our attempt to create a highly quality-controlled listings of expert ESOP advisors.
Mr. Pryor’s expertise encompasses a variety of ESOP fields, such as ESOP feasibility study and valuation, consideration and fairness opinions, and exit planning.
Robert Hicks, Jr.: ESOP Valuation Specialist with Acclaro
Valuation is a crucial step in the ESOP process, being necessary to determine accurate company share price and ESOP dividends. ESOP Marketplace is happy to add an expert valuation firm – Acclaro Valuation Advisors – to its company listings.
Robert Hicks is one the firm’s advisors with an individual listing featured on our site. Mr Hicks, a managing director at Acclaro, is a Certified Public Accountant who has provided valuation and consulting for privately owned businesses for over 20 years.
His overall experience in the financial services industry spans 35 years; in the employee ownership field, he’s an expert in ESOP feasibility study planning and execution, advisory services pertaining to management compensation, fairness, initial and annual ESOP valuations, fiduciary matters, financing and problem-solving.
We have some big news from Acclaro and its managing director and ESOP advisor Chris Best. Acclaro has recently announced that they’re opening a new branch in the Chicago marketing area. This new office will be in addition to their location in Phoenix, Arizona. Chris Best had the following to say about the new office, “The new office in Chicago will better enable Acclaro to serve the business valuation and exit planning needs of our Midwest clients.”
The new Chicago branch will be headed by Glenn Ball, who has has provided tax, accounting, and business valuation services to privately held businesses since 2000. He is an an Accredited Senior Appraiser (ASA) and a Certified Public Accountant (CPA). He also holds the Accredited in Business Valuation (ABV) credential.
This is big news for ESOPs because Acclaro is a leading authority on the valuation of businesses that sponsor ESOPs. They always strive to provide their clients with independent, technically sound, well-researched, and defensible valuation reports. And they’re just the type of company you can form important connections with through the ESOP Marketplace.