Journey to an ESOP & Beyond

This episode opens up a topic that I think is easily confused - just what does the seller take on in Fiduciary risk in doing an ESOP transaction.  Greg always does a great job - this is his third time on the podcast and provides a wealth of knowledge as a resource to our listeners.  He leverages information from the Vinosky esop case which provides a good reference in better understanding selling shareholders fiduciary risk and reliance upon ESOP professionals.

This episode compares and contrasts two actual ESOP deals that we worked on at the end of 2021.  The take-aways  will hopefully help you in asking questions of your advisors if you are on a journey to an esop or will start one soon!

This episode includes a discussion with Steve James and Heather Driscoll of SCJ Fiduciary Services.  Steve is credited with doing the first Dental practice in the U.S.  They do a great job explain how ESOPs are perfectly suited for all kinds of healthcare companies including physical therapy, autism centers, hospitals, etc....they outline some of the challenges but all together healthcare companies make great ESOPs

Happy new year everyone!  This episode highlights my favorite episodes of ESOP podcasts for a quick review of some interesting topics including:  ESOPs as roll ups; ESOPs for contractors; ESOP politics; ESOP boards adding value; and ESOP culture to name a few that we discuss.

This episode provides a solid discussion on ESOP financing with experienced ESOP lender with First American Bank.  It really does matter who you choose to finance your transaction and what your eventual banking relationship is going to look like once the transition is complete.

This episode reviews the issues related due diligence on ESOP deals.  One of the steps along the journey to an ESOP is to work through due diligence with the transaction trustee and their valuation firm.  It is a critical step and always better to plan early for due diligence so everything else goes smoothly.

In this episode Carla and I discuss the planning needed for a company on a journey to an esop dealing with 404, 415, and 409(p) requirements, limitations and application of the rules to make sure your company is ESOP feasible.   Carla has a really cool background - and actually worked with Louis Kelso economist who is notably the inventor and founder of ESOPs.

This episode highlights "The Blue Ocean Strategy" by Renee Mauborgne and W. Chan Kim to help you prepare for your end of year planning strategies.  The episode provides tips on using some of the tools to help walk through the process of creating blue ocean ideas.

This episode covers how key performance indicators can be used to improve the strength of your company and possibly lead to higher business valuations and be an advantage in negotiations for the sale of your company to an ESOP.

In this episode Rick and I explore the value of the board of directors for an ESOP company - definitely helpful for those on a journey to an ESOP to leverage this requirement into an means to support growth and higher valuations.