Considering winding down your ESOP?
You’ve been ESOP-owned for awhile now, but just received an offer from another company to purchase yours. What now? Do I have a duty to the ESOP participants to look into it? How do I know if it’s a good offer or not? What if we accept the offer and they don’t take the ESOP with it? What am I supposed to do with the ESOP?
Or maybe your industry or market has shifted dramatically since your ESOP was put into place and your company is now struggling – even going backward and eroding ESOP share value. Should I close it down now while there is still some value left?
Or perhaps your ESOP was originally put into place many, many years ago and frankly has been neglected since then. Most of the original sellers are out of the picture, many of the early ESOP participants are no longer employed by the company, or there are no more shares available to current employees. It feels like the ESOP is an albatross around the company’s neck. What are my options? Am I stuck with this or can I re-configure the ESOP?
Regardless of what brings your ESOP to the end of it’s lifecycle, the core question remains: How do I wind down an ESOP?
Our goal is to preserve trust value for the participants and wind down the ESOP in an orderly and compliant fashion for the benefit of everyone involved.
Is this where you’re at? Setup a call today and let’s discuss your current ESOP situation.
