Employee Stock Ownership Plans
Strategic Ownership Transition Solution for Design Firms
Employee Stock Ownership Plans (ESOPs) have become an increasingly popular and powerful ownership transition strategy for architecture, engineering and design firms. They offer a unique blend of financial and tax advantages, enhanced employee engagement, and a path to gradual ownership transfer. When implemented properly, ESOPs can improve firm value, morale, and long-term continuity.
Designing and implementing an ESOP is a complex, multi-step process that requires the integration of valuation, tax planning, financial modeling and cultural change management. DM Consulting Group brings unmatched experience in guiding closely held A/E firms through every step of the ESOP journey.
Expert ESOP Valuation and Advisory
Establishing an ESOP requires an accurate and defensible valuation of the firm’s stock. Federal regulations require that ESOP trustees do not pay more than fair market value for company shares, making the valuation process a legal and fiduciary obligation.
Our team at DM Consulting Group includes certified business appraisers with extensive experience in valuing design firms for ESOP purposes. We provide:
- Independent, third-party valuations in compliance with IRS and Department of Labor standards.
- Annual valuation updates for continued compliance and strategic decision-making.
- Consultation with ESOP trustees, legal counsel and lenders to align valuation with the transaction structure.
Whether you’re seeking liquidity, improved employee retention or establishing a clear exit strategy, we can help you determine if an ESOP is the right fit for your goals.
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