Employee Stock Ownership (ESOP)
Create Employee Ownership
MCM offers a team of experienced professionals who are equipped to help business owners navigate the next chapter of their business. We are able to help business owners take a clear look at what is the best for their company and advise them from consideration to execution.
An option for business transitioning is Employee Stock Ownership Plans (ESOPs). ESOPs are commonly used to provide a market for the shares of departing owners of successful closely held companies, to motivate and reward employees, and take advantage of income tax savings. ESOPs provide an attractive tax-advantaged succession plan to business owners.
We are ready to help you achieve your goals through a team-based, holistic approach to bring the solutions you need.
Our ESOP Advisory Services
Planning for initial ESOP transaction
- Determine that ESOP is the optimal exit pathway through our certified exit planning services
- Receive finalized financials & tax returns
- Finalize projected income statements
- Meet with MCM to discuss projections and pre-transaction items.
- Certified exit planning services
- Management team assessment and readiness
Hiring the Right Team
- Interview and hire ESOP attorney.
- Goals are defined for overall transaction value, structure and other details.
- Interview and hire ESOP trustee. ESOP trustee to represent ESOP trust.
- ESOP trustee hires valuation firm to prepare valuation and feasibility study. ESOP trustee hires admin firm to handle record keeping and testing.
- Interview banks, clarify cash flow based on estimated value.
Finalizing the ESOP Transaction
- Finalize deal terms with ESOP trustee.
- Select bank to handle financing.
- Finalizing all necessary legal documents.
- ESOP design and implementation
- Communicate transition strategy to team and start education process of ESOP to employees.
- Closing of transactions.
- Establish governance design for ongoing management and decision-making post transaction
Estimating the Value of Your Business
As part of the decision making process, determining the value of your business is a critical step. We work with the business owner in a collaborative manner to evaluate how to best value their company. We gather input from the owner about their business and gain an understanding of the critical value drivers for the business. This type of analysis focuses on the specific approaches to value that are most relevant to value a specific company. We provide the result as a Calculation of Value, a level of valuation service defined under the AICPA valuation standards.
CPA, ABV, CFF, CFE
CPA-ABV, CBA, CFE
CExP, ACFBA, CFWA
Consulting Principal, Family Business Advisory Services Team Leader
Partner, Insurance Services Team Leader
Partner, Employee Benefit Services Team Leader
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