David Burdette, CVA
404.214.3605
ESOP Feasibility Studies
Applied Economics’ typical starting point is the “ESOP Feasibility Study.” The purpose of the Feasibility Study is to arm the business owner with the information they need in order to make a decision as whether or not to proceed with installing an ESOP.
The Feasibility Study is complex with multiple moving parts. We strive to simplify the process and clearly communicate with our clients. The Feasibility Study answers many critical questions such as: What is the Company’s current valuation? What can an ESOP transaction look like? Does the ESOP accomplish the goals of the owner, the company and its employees?
At Applied Economics, our typical Feasibility Study incorporates multiple scenarios in order to paint a clear picture for the business owner. The honeycomb below illustrates some of the key components of the Feasibility Study.
We present our Feasibility Study to the business owner, the Board of Directors or other interested parties. If an ESOP is determined to be the chosen path we move to our second phase, which is to install the ESOP. At this stage, we work with the business owner, management, attorneys and others to march towards a successful ESOP closing.
