The ESOP Playbook

by Brandt Brereton, Jared Hanley

Overview

This book is largely written in a Frequently Asked Question and Answer format augmented by the historical context for Employee Stock Ownership Plan law, basic corporate finance mathematics used in ESOPs and also has a section of “plays” i.e. common business scenarios with text and illustrations showing how the ESOP structure can elegantly address the desired outcome of these various problems requiring a solution other than selling the company to outside buyers.

Product Details

ISBN-13:	9781543900477
Publisher:	BookBaby
Publication date:	04/04/2017
Sold by:	Barnes & Noble
Format:	eBook
Pages:	100
Sales rank:	452,859
File size:	2 MB

About the Author

Brandt Brereton began his investment banking career in 1987 and is a partner in the investment bank of Brereton, Hanley & Co., Inc headquartered, where he lives, in Silicon Valley. His wife and he have three sons in college and he enjoys sailing, fishing and hunting in his spare time. He was graduated from San Jose State University earning a BBA in Finance and has studied at Harvard Business School’s Executive Education Program.

Table of Contents

Purpose Statement 5

Philosophical Underpinnings of ESOPs 7

Introduction and History of ESOPS 9

Features and Benefits 13

ESOP Misconceptions Debunked 17

Perspective of the Selling Shareholders 19

Mechanics of an ESOP Sale 23

Economics of an ESOP Transaction 29

Valuation Issues 31

Financing and Accounting for ESOPs 37

Cost to Implement and Administer ESOPs 43

Disadvantages of ESOPs 45

Preparing your Company for an ESOP 49

Employees of an ESOP (Eligibility and Equity Alternatives) 51

ESOP vs. Private Equity Sale vs. M&A Sale 53

Alternative ESOP Plays:

Play #1 "Test Drive Your Succession Plan" 69

Play #2 Do Your OWN Private Equity Deal 71

Play #3 Create & Fund Your Family Foundation 73

Play #4 Remove Shareholders & Keep Control 75

Play #5 Obtain 100% Liquidity in an ESOP Sale 79

Play #6 Sell Minority Stake at a Premium 81

Play #7 Buy a Company Using the ESOP 83

Play #8 ESOP for Growth Acquisitions 85

Play #9 Achieving Liquidity Without New Debt 89

Play #10 Handing Down the Family Business 91

Play #11 Change Real Estate to Cash, Tax-Free 93

Role of Investment Bankers / Financial Advisors 95

Conclusion 97