Risk Management

There are many types of risk;  transactional, company or directly for the owners. There are some examples of unsuccessful ESOPs and unsuitable situations.  We will help you navigate the risks. Some companies that make poor candidates for an ESOP often have one or more of the following attributes:

  • Consistently weak earnings and cash flow
  • Poor internal controls
  • Company’s management philosophy does not promote strong corporate governance
  • Poor employee/management relations
  • Poor relationship with lenders
  • Weak management succession plan
  • Poor understanding of regulatory requirements

Additionally, managing the owner's realized value earned from the sale of the company needs to be safeguarded from taxes and from unforeseen disasters. We provide access to life, casualty and key man insurances that will assist to mitigate these risks. 

Finally, there is the risk of taxes deteriorating the owner's realized value. Working with the Owner's existing CPA and/or Financial Planning professional, taxes can be mitigated.  If the owner does not currently have a team, we can introduce vetted professionals.