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    Setting Up an ESOP

    Learn the ESOP Implementation Process

    Our most successful ESOP clients know that investigating and implementing an ESOP doesn't need to be a daunting task. Done well, with the right advisors, and the client guided through the right steps, only incurring the right costs in the right order as the process develops, yields much better ESOP outcomes. Yes, implementing an ESOP requires a lot of hands-on learning curve by everyone involved at the client level; but that work is worthwhile, as Employee Benefits Law Group guides you through the entire ESOP process.

    How to Implement an ESOP

    To implement an ESOP, the employer sets up a trust to hold stock in the corporation that’s either newly issued or purchased from the owner. If it’s buying from the owner, the trust will hold a cash contribution from the employer or loan proceeds to pay for the stock.

    The company’s owner and the ESOP trustee will determine the amounts of stock and terms of the sale, but it must be based on a third-party appraisal of the company’s value. Upon agreement, the ESOP purchases the stock and holds it in the trust as an investment for the benefit of the ESOP participants.

    We'll work with you to craft an ESOP that is suitable, feasible, and compatible with the objectives of your company and its shareholders.

    Education, disclosure and objectivity – coupled with informed decision-making – create successful ESOPs. That's why we're committed to supporting and involving you and your resources every step of the way.

    "The ESOP buyout needs to be designed so that it doesn't overburden the company. You have to be sure - absolutely certain - that the terms, conditions and covenants, representations and warranties, are all something that everyone can live with for a long time."

    – Kevin Long, Employee Benefits Law Group Shareholder