An employee stock ownership plan (ESOP) might be a great way to engage and reward your employees who have helped to create value in the company. ESOP’s can also create cash flow opportunities, tax benefits, and possibly preserve the legacy of the founders, allowing a new generation to move the company forward.
When considering an ESOP, stakeholders, including attorneys, CFOs, and business owners, need carefully researched and supportable business valuations. Rivero, Gordimer & Company (RGCO) knows the unique opportunities and challenges of establishing and maintaining an ESOP and can provide the services you need. With more than 30 years of experience supporting closely-held businesses from small family-owned businesses to large corporate entities, we know how to protect assets while providing innovative ideas to ensure your business’s continued success.
With in-depth knowledge and a team of resources, RGCO will develop an effective and personalized ESOP strategy that is right for you. From dispersing the shares of departing partners and borrowing money to establishing a payoff strategy and employee benefits, our team will help you understand the nuances of an ESOP process from start to finish.
ESOP Fairness Opinion
Additionally, we work with the ESOP trustee to prepare a fairness opinion related to the ESOP initial stock purchase transaction. The fairness opinion assesses whether the initial stock purchase transaction is fair to the ESOP from a financial perspective. The fairness opinion is more than the price per share or value of the stock. It often includes a determination of:
- Fair market value
- Fairness to the ESOP relative to all stakeholders
- Appropriate financing terms in regards to ESOP
- Financial documentation to ensure proper steps were taken
- Financial impact on the company moving forward
Department of Labor
If you are an ESOP, you may hear from the Department of Labor (DOL).
DOL oversees the ESOP and is actively engaged in assisting the ESOP with DOL enforcement activities against employee stock ownership plans focusing on the valuation of company stock. The DOL makes sure the ESOP complies with the law. RGCO will work with you to provide the ESOP information the DOL requires.
As a full service firm, Rivero, Gordimer & Company’s ESOP team provides pertinent services including:
- ESOP implementation (feasibility analysis and assembly of the legal, TPA, valuation, and financing team and guides the business through the process)
- Fairness opinion
- Yearly compliance valuation
- Yearly compliance audit
- Finance procurement assistance
- Tax planning
Rivero, Gordimer & Company has proven experience implementing ESOPs and providing yearly compliance services to an established ESOP. We take your finances seriously so you can confidently run your business knowing that you will maintain compliance and avoid penalties, fines and possible inquiries from the DOL and IRS. We keep your company protected and investments profitable.
Industries we provide ESOP services for:
Rivero, Gordimer & Company has the requisite industry experience to assist with ESOP services for businesses in the following industries::
- Construction & Real Estate
- Healthcare & Wellness
- Trucking & Transportation
- Professional Service Providers
- International Business
- Mining and Extractive Industries
- Retail and Wholesale Distribution
In addition, Rivero, Gordimer & Company has worked with companies operating as:
- Not-for-profit Entities
- Franchisees and Franchisors
- Manufacturer’s Representatives
- Government Contractors