Employee Stock Ownership Plan (ESOP)

What Is An ESOP?

An ESOP is a tax-qualified retirement plan under ERISA that is designed to hold the securities of the plan-sponsor company. An ESOP is an alternative liquidity option for business owners that gives employees a beneficial ownership in the company at no cost to them.

SC&H has dedicated ESOP experts on staff to assist with the formation, termination, and administration of ESOPs. In addition to providing a variety of professional services to ESOP plan sponsors, SC&H is also a 100% employee-owned company.  As a result, SC&H professionals have a deep understanding of the unique challenges and opportunities that come along with running an ESOP company.

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

In whatever capacity we can assist – from advising on initial plan structuring to assisting with plan implementation to fulfilling compliance obligations – we work with you to meet your goals and objectives, and stay with you to exceed your expectations.

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