| Outcome |
SEDA Services |
|
Technical Details |
1. Goals
|
Independent third party (due diligence) review of the issues and feasibility of an ESOP. |
|
|
2. Ownership Options
|
Review of the:
- Legal structure of the company;
- Type(s) of ownership options;
Recommendations of ownership options to consider. Assess ability to help. |
|
Feasibility Study |
3. ESOP Strategy
|
Create a match:
Company + Stock Option Plan.
Critical path agreed upon, responsibilities allocated. |
|
Goals & Strategy |
4. Clarify Details
|
Establish formal timetable, receive remaining documents.
Facilitate clarification of expectations, goals, roles, participants, timing, costs, and document needs. |
|
Eligibility Ruling |
5. Project Plan Outline
and Deliverables |
Outline the pros and cons of all options and work with the ownership group to determine which alternative best suits the company.
Recommend sub-contractors:
(business valuator, income tax specialist, corporate/commercial lawyer) |
|
Business Valuation
Stock Plan |
6. ESOP Plan
|
Document a summary of all details and specific actions to be taken.
Record discussions and assist in assessment of whether to proceed or stop the process. |
|
ESOP Legal Structure
Tax Considerations
Financing |
7. Gauge Employee Interest
|
Organize delivery of educational seminar, completion of questionnaire, and measure the level of knowledge about investments and ESOPs. |
|
Training |
8. Employee Information
Package |
Collect all materials required to complete the employee information package. |
|
Shareholder’s Agreement |
9. Investment & Equity Issue
|
Finalize ESOP design and LSVCC registration and department approvals. |
|
Registration Application |
10. Subscription Meeting
|
Oversee the subscription distribution, and document registration. |
|
Tax Credit Data |
11. Define Operating Plan
|
Oversee the subscription distribution, and document registration. |
|
Reporting Requirements |
12. Fostering an Ownership
Attitude |
Educate the company on the tools needed to ensure a successful outcome for the ESOP. |
|
Training |
