Employee Stock Ownership Plan (ESOP)

What Is An ESOP?


An alternative liquidity option often overlooked by business owners is an Employee Stock Ownership Plan (ESOP). An ESOP is a tax-qualified retirement plan under the Employee Retirement Income Security Act (ERISA) that provides a company’s workforce with ownership interest in the company, the “plan sponsor,” at no cost.

Our dedicated ESOP experts assist plan sponsors with the formation, administration, and termination of their ESOPs. SC&H Capital professionals have a deep understanding of the unique challenges and opportunities that come with managing an ESOP because SC&H Capital itself is 100% employee-owned. We offer a variety of professional services to ESOP plan sponsors as this alternative liquidity option is a win-win for them and their employees.

Our First-Hand Expertise

We rely on the specialized knowledge of our professionals to serve ESOP clients nationwide, assisting plan sponsors and trustees in establishing and maintaining well designed ESOPs. Our services to ESOP companies are summarized below.

Pre-ESOP Planning

  • Assessment of strategic alternatives
  • Preliminary valuations for shareholders to understand a company’s fair market value
  • ESOP feasibility studies

ESOP Transactions

  • ESOP transaction structuring advisory and negotiation assistance
  • Formal transaction valuations and fairness opinions on behalf of plan trustees for purchases and sales of stock by the ESOP
  • S-Corporation tax opinions for use by the Board and financing sources
  • Follow-on transaction structure, negotiation, and valuation

 Annual Valuations & Other Services

  • Annual valuations on behalf of the plan trustee as required by the Department of Labor
  • Plan audit services
  • Company sponsor financial statement audit services
  • Tax compliance and ESOP accounting assistance

Sales of ESOP Companies

  • Fairness opinions
  • Merger and acquisition advisory
  • Appraisals required for ESOP terminations

From advising on initial plan structuring to assisting with plan implementation to fulfilling compliance obligations—SC&H Capital assists ESOP plan sponsors in countless ways. With the benefit of our seasoned experience, our clients meet goals and objectives and often realize gains beyond their expectations.

Learn More About Our SC&H Capital Practice And What We Can Do For Your Business

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