Adopting and implementing an employee stock ownership plan (ESOP) is a complex process. While ESOPs provide many benefits, there are many issues to consider when deciding to make the transition. An ESOP feasibility study can address these matters and determine if an ESOP is right for your business – and it can clarify the path to a business succession plan, offering employees another retirement benefit, or achieving diversification.

A Herbein ESOP feasibility study gives the selling shareholder(s) the financial information needed to determine whether to move forward with an ESOP transaction. Further, the results of the feasibility study enable the selling shareholder(s) to propose a structure to the ESOP trustee and their team. The study also provides ways that an ESOP can be designed to offer the most benefits for your company and the selling shareholder(s).

Herbein ESOP advisors focus on:

  • Identifying the goals and objectives of the seller
  • Preparing financial modeling based on projections
  • Assistance with financial projections
  • Assessing the historical financial results
  • Gaining an understanding of the company’s financial history
  • Determining the impact of an ESOP on other qualified retirement plans in place (i.e. 401(k) plans)
  • Reviewing future eligible compensation
  • Assessing senior debt capacity and financing options