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ESOP Structure We reviewed Richard's situation and suggested that with our help, he
should implement an Employee Stock Ownership Plan (ESOP) as part of the
transition process. In readying the company for the ownership transfer,
we helped Richard analyze the management team currently in place and where
needed, fill in the skill gaps. To determine what areas of the company
would need shoring up before the transfer, we conducted operational audits
reviewing everything from the materials purchase process to the sales
and marketing functions. This helped ensure that weaknesses of the
company could be addressed by the owner while he was still involved in
day-to-day operations. After helping the company address these areas,
our firm implemented the ESOP with the assistance of legal counsel.
Every employee could now gain a stake in the company, from the 25-year
CFO to an on-site foreman, the first person Richard hired. Our firm
worked with Richard from start to finish, managing negotiations with lenders,
readying the management team and instituting policies that would help
the company continue to flourish after the transition. |
Richard, the owner of a decades-old construction company, was looking for a
way to transition out of the business. He was looking to do more than simply
"cash out" in the upcoming sale. He had many goals to accomplish in the process.
As is the case with every business sale, he wanted to obtain fair value. He
also wanted to take care of those who had helped him for so many years. He
wanted to ensure the same management team that helped him build the company
would first be able to retain their positions and secondly, eventually gain
ownership. Faced with this complex business succession matter, Richard came
to Talley & Company.
