ESOP Design and Financing
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ESOP Implementation Process

The following lists sequentially the primary ESOP services offered by Equity Expansion International, Inc. where the laws permit ESOPs to be established. An actual detailed checklist and timetable for a typical client would show about 50 legal and administrative procedures, tailored to that client’s needs, which must be performed between the time of the client’s decision to proceed and the completion of ESOP installation and the first year’s administration. Depending on the complexity of the case, EEI will spend 3 to 12 months to prepare and present an ESOP for approval by the client. The EEI team can supply a client all services for achieving a quality ESOP, from A to Z.


Our ESOP Implementation Process Includes:


    1. ESOP on-site exploratory consultation and establishment of working relations with local professionals.
    2. Preliminary analysis and, when appropriate, arrange for detailed ESOP feasibility study.
    3. Stock valuation (client selects independent appraiser to work within EEI time frame).
    4. Design ESOP specifications to meet client’s objectives.
    5. Assist client in obtaining letter of commitment from lender.
    6. Draft ESOP plan, trust agreement and board resolutions and coordinate preparation of all supporting documents for approval by client.
    7. Design, introduce and conduct Employee Stock Ownership education program.
    8. File data and forms for approval by appropriate government agencies.
    9. Prepare Employee Handbook explaining the ESOP in easy-to-read language.
    10. Conduct meetings with employees to distribute and explain Employee Handbook.
    11. File employee handbook with appropriate government agency (if required).
    12. Prepare ESOP accounting and allocation manual and administration handbook and checklist for client.
    13. Train in-house administrators of ESOP.
    14. Conduct computerized allocations and prepare individualized participant letters and ESOP statements.
    15. Assist client in preparation of ESOP annual financial reports, tax forms and distribution of ESOP statements to employees.