Upon exiting the United States Constitutional Convention in 1787, Benjamin Franklin was asked about the nature of the newly drafted Constitution. His response, 'A republic, if you can keep it,' resonates with the challenges of sustaining an Employee Stock Ownership Plan (ESOP). Just as maintaining a republic requires diligence and foresight, so does preserving an ESOP. This guide explores the critical concept of ESOP sustainability and outlines the steps to conducting a comprehensive ESOP sustainability study ..read more

Welcome to the future of deal-making! With environmental, social, and corporate governance (ESG) considerations swiftly emerging as a paramount concern for regulators, investors, customers, and employees alike, companies are increasingly focusing on creating long-term value through responsible business practices and overall strategy, including potential merger and acquisition (M&A) transactions. By embracing sustainability, your company could position itself as not only a market leader but also a pioneer in the movement toward a sustainable future ..read more

ESOP companies have a statutory requirement to provide sufficient cash to the ESOP for purposes of repurchasing employee shares. These shares are typically purchased from employees upon their retirement, voluntary or involuntary termination, or death. For most of your ESOP participants, a significant payout can represent years of dedication and hard work and, more important, a significant component of their retirement savings. For your company’s executive team, however, it can create financial challenges. With an increasing share price comes an increasing repurchase obligation (RPO). Your CFO ..read more

Selling your business can be a complex process filled with unfamiliar industry jargon and financial metrics. To help you navigate this, PCE has compiled a glossary of key terms. This guide will introduce you to this essential language and provide an index to our extensive database of resources. With this context, you'll be better equipped to understand the process of selling your business ..read more

As a busy business owner or financial executive, you may be tempted to trim nonessential tasks from your to-do list by asking a crucial question about each undertaking: What’s in it for me or my company? That’s a good place to start when considering whether your company should compile periodic business forecasts. But a second question should be: What does it tell others about my company ..read more

Completing an employee stock ownership plan (ESOP) transaction marks a significant transition in the life cycle of any company. Not only does it begin a new chapter for the company that centers around employee ownership, but it also includes unique financial considerations that are crucial for the ongoing success and sustainability of the business. This guide explores the critical aspects of financial management post-ESOP transactions, including debt repayment, tax considerations, cash flow management, and repurchase obligations ..read more

Embarking on the path of selling your business is a landmark decision laden with complexities, opportunities, and decisions. As a business owner, it's essential to navigate this transition with a strategy that aligns with your long-term vision and the legacy of your enterprise.  ..read more

PCE Investment Bankers, Inc. (PCE), a leading financial services firm specializing in midmarket companies, is excited to announce the recent transition of 100% ownership of Group Sales, Inc. (“Group Sales”) into an Employee Stock Ownership Plan (“ESOP”). PCE served as the exclusive financial adviser to Group Sales ..read more

Employee engagement is a hot topic in the business world, touted for its ability to boost morale, reduce turnover, and improve customer satisfaction. But for business owners, particularly those considering an exit strategy or future capital raises, the true value of employee engagement lies in its impact on company valuation. The valuation impact of these types of changes goes beyond anecdotal evidence and can be quantified using a variety of metrics and appraisal techniques ..read more

By choosing an employee stock ownership plan (ESOP), you are offering your employees a unique opportunity: to gain a financial stake in the company they work for. Yet the true value of an ESOP lies not just in the financial benefits but in the sense of ownership and belonging it instills in your people. Employees begin to think like owners, a shift in mindset that positions them to align your company’s interests with their own, which in turn will lead to greater productivity. Merely offering an ESOP, however, isn’t enough to unlock the full potential of this powerful employee benefit plan. To ..read more