ESOPs Made Easy with Our Clearcut Process

Sharevance follows a standard process for all businesses evaluating whether to start an ESOP. This allows us to lower costs while still providing the highest-quality solutions. The steps might be standard but the timeline isn’t – as an owner, you can go as fast or as slowly as is comfortable for you. 

If you are a trustee looking to bring the administration of an existing ESOP to Sharevance, your journey starts at Step X.

A free feasibility analysis and preliminary valuation are the first step at Sharevance. This allows owners to get a sense of the possibilities for business liquidity and tax-advantaged benefits for themselves and their employees. If the results are positive, Step 2 is next.

Step 2 in Sharevance's ESOP process

A letter of Intent and formal valuation comes next. This is an official 409A valuation that will represent the company’s value to the IRS and Department of Labor in the stock pricing in the ESOP transaction. Alternatives for financing the transaction will laid out.

Step 3 in Sharevance's ESOP process

The ESOP Trust is formed and funded. The EOP Plan Agreement is drafted and key decisions from vesting schedules to distribution formulas are made. Employee engagement and education begins to bring the whole company along on the journey to employee ownership.

Step 4 in Sharevance's ESOP process

The ESOP Plan is implemented and the share sale takes place. If applicable, succession plans are executed. Distributions are made to employees and communicated.

The ongoing cadence for ESOP Plan administration is established and responsible company contacts are identified to ensure compliance with annual requirements.