ESOP trust-side advisory

Prairie has a long history assisting ESOP fiduciaries on valuation, transaction structuring, plan design and negotiations during the ESOP sale process

Our Process

ESOP fiduciaries have to ensure the procedures assumed during a transaction are well conceived and properly documented. Prairie’s wealth of ESOP and transaction expertise allows us to effectively analyze a potential sale in its entirety and communicate the results to the ESOP fiduciary for a prudent investment decision

1. Valuation Guidance

We will provide valuation guidance to help the ESOP fiduciary understand the company’s range of fair market value. Our valuation process is grounded in sound principles and mimics how external investors price similar securities. Since an ESOP is a ERISA protected plan, it can not pay more than fair market value for the shares it is acquiring. Conversely, the ESOP can not sell its shares for less than fair market value.

2. Feasibility Analyses

Once the valuation is completed, we will conduct a feasibility analysis based on different transaction structures. The feasibility analysis services as a decision making tool that measures the impact the transaction will have on all stakeholders. The study combines different analyses (solvency, liquidity, financing, employee benefits and more) that cover many areas of concern that are encountered during the transaction process.

3. Transaction Negotiation

Our team brings significant experience to the negotiating table. We help ESOP fiduciaries understand the implications of a potential transaction, whether it is valuation or specific deal terms. We are cognizant of the ESOP trustee’s fiduciary obligation. It is our job to provide insightful analysis and independent advice so the ESOP fiduciary can make a prudent investment decision.

4. Issue Fairness Opinion

ESOP transactions range in complexity; however, it is important to have an advisor that is independent, objective and understands each deal component. We have issued hundreds of fairness opinions to ESOP fiduciaries concerning the overall financial fairness of a transaction.  Click here for our fairness opinion rankings.

Contact Us

Since our inception, Prairie Capital Advisors has served business owners and ESOP Fiduciaries on endless ESOP matters

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Middle - Market Focus

Middle - Market Focus

Prairie Capital Advisors is dedicated to serving the investment banking and financial advisory needs of middle - market business owners

Ownership Transition

Ownership Transition

A successful transition needs a well-thought- out strategy. We will help define, shape, and implement a plan that meets your short-term and long-term objectives

Corporate Growth

Corporate Growth

Build or buy? It could be both. Prairie Capital Advisor’s strong relationships with debt and equity capital sources will help you realize your corporate growth strategies

Business Sustainability

Business Sustainability

Sustainability requires strategies that grow the enterprise and minimize risks. Prairie advises companies on strategies that result in long-term shareholder value