Project Management

Any business transaction can be complex and therefore requires the expertise of financial and legal advisors, specifically when dealing with employee ownership plans such as an ESOP, 401(k) or Cash Option. For example, in these situations, the final result must pass a regulatory review of the Department of Labor (DOL) and the Internal Revenue Service (IRS). While also providing the economic return sought by the owner and/or shareholders. We guide you through all this. 

Pathfinder USA's role as the Project Manager includes:

  • Completing a valuation and analyzing company value based on comparable company analyses and discounted cash flow analyses
  •  Ensure the company will be able to obtain a favorable opinion regarding fairness to the ESOP
  • Ensuring the company will have a capital structure that generates the optimal returns to all participants
  • Devising an equity allocation structure that stands up to DOL scrutiny and results in a favorable fairness opinion from the financial advisor to the ESOP
  • If necessary, recommend innovative securities such as convertible preferred stock or multiple classes of common stock that meet liquidity, return, and tax objectives of the ESOP, the selling shareholders, and outside investors
  • Recommending to our client the best fit for ESOP trustee and related service advisors (legal, admin, valuation, financing)
  • Negotiating on behalf of the sponsor company with the ESOP trustee
  • Coordinating other professionals involved in the transaction and helping manage the invoicing, follow-up and fees of those professionals
  • Ensure the transaction closes in an expeditious manner and on budget
  • Monitor the after transaction culture and education of employee owners