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60 minutes
Date: June 23, 2010
SKU: wb-esop2
ESOPs: Everything Your A/E Firm Needs to Know (Part 2)

Presented by Greg Hart of ZweigWhite, David B. Solomon, Esq. of Levenfeld Pearlstein, LLP and James E. Staruck of GreatBanc Trust Company
This webinar is available in two parts. You can attend the parts individually or order the series at a discounted price.

As more owners of A/E firms approach retirement age, these firms will have to begin to explore various ownership succession strategies.  If ownership succession issues are not properly addressed, A/E firms may be faced with having to sell their company to another firm or to simply close up shop.  However, there is another approach that many owners of A/E firms have taken which is to sell to an employee stock ownership plan (ESOP).

Using an ESOP to facilitate ownership succession for privately held companies is popular because of the unique benefits provided to both the current owners of the company who choose to sell their stock to an ESOP as well as the employees who will participate in the ownership of the firm after the transaction.  Studies have also shown that employee-owned companies are generally more profitable than companies that don’t provide equity ownership to their employees.  According to a recent survey by the National Center for Employee Ownership, more than 65 percent of the 200 ESOP-based organizations polled reported growth or sustained profits in 2009 – one of the worst years economically in more than 70 years.

If your A/E firm is considering using an ESOP for ownership succession or if you are looking to buy or sell an employee-owned A/E firm, you will gain valuable insights by attending this two-part webinar series: ESOPs in the A/E Industry.

Expert presenters from ZweigWhite, GreatBanc Trust Company, and Levenfeld Pearlstein, LLC will discuss the key legal, administrative and valuation issues associated with using an ESOP for ownership succession of an A/E firm.  At the end of this two-day series, you will have a firm understanding of what an ESOP is, the factors to consider when deciding if an ESOP is right for you’re A/E firm and how to handle day-to-day administrative issues in maintaining an ESOP.
TO ORDER:
Call: 1-800-466-6275 (M–F 8:30–5:30 ET)
Web: http://www.zweigwhite.com/zw-945.aspx
Format Price
Electronic Download $225.00

Full Description

As more owners of A/E firms approach retirement age, these firms will have to begin to explore various ownership succession strategies.  If ownership succession issues are not properly addressed, A/E firms may be faced with having to sell their company to another firm or to simply close up shop.  However, there is another approach that many owners of A/E firms have taken which is to sell to an employee stock ownership plan (ESOP).

Using an ESOP to facilitate ownership succession for privately held companies is popular because of the unique benefits provided to both the current owners of the company who choose to sell their stock to an ESOP as well as the employees who will participate in the ownership of the firm after the transaction.  Studies have also shown that employee-owned companies are generally more profitable than companies that don’t provide equity ownership to their employees.  According to a recent survey by the National Center for Employee Ownership, more than 65 percent of the 200 ESOP-based organizations polled reported growth or sustained profits in 2009 – one of the worst years economically in more than 70 years.

If your A/E firm is considering using an ESOP for ownership succession or if you are looking to buy or sell an employee-owned A/E firm, you will gain valuable insights by attending our upcoming two-part webinar series: ESOPs in the A/E Industry.

Expert presenters from ZweigWhite, GreatBanc Trust Company, and Levenfeld Pearlstein, LLC will discuss the key legal, administrative and valuation issues associated with using an ESOP for ownership succession of an A/E firm.  At the end of this two-day series, you will have a firm understanding of what an ESOP is, the factors to consider when deciding if an ESOP is right for you’re A/E firm and how to handle day-to-day administrative issues in maintaining an ESOP.


AGENDA

Part 2: Putting the ESOP in Place & Life as an ESOP Company

  • ESOP feasibility: the factors and constraints that need to be tested
  • What fair market value really means for ESOP valuation 
  • Unique ESOP-related issues, such as the leveraged “ESOP hangover” and ongoing valuation requirements  
  • The role of trustees/fiduciaries and governance issues
  • Best practices for ongoing ESOP administration, including reporting and compliance requirements 
  • Special considerations for ESOP companies during M&A, and how buyers can use ESOPs to their advantage 
Who Should Attend?
  • Firm Owners
  • Principals of architectural, engineering and construction firms
  • Law firms that assist A/E firms with ESOPs

Presenter Info

David B. Solomon, Esq.
Partner
Levenfeld Pearlstein, LLP

David Solomon is a partner in the Corporate Practice Group of Levenfeld Pearlstein, LLC. He has extensive experience in transactions involving the use of ESOPs to facilitate the purchase of businesses and has formed a new ESOP Services practice at Levenfeld Pearlstein in 2009.

David also advises clients in the areas of mergers, acquisitions and divestitures, private and venture capital, financing, employee benefits and executive compensation and represents many companies in a “general counsel” capacity by handling various business law issues.

David has been practicing law since 1994.  David received his Juris Doctor from DePaul College of Law in Chicago, Illinois and his Bachelors in Business Administration with distinction from the University of Michigan.  David is a member of the ESOP Association and the National Center For Employee Ownership (NCEO).  He has lectured frequently on ESOPs and other employee benefit topics, has authored a treatise discussing the benefits of S corporation ESOPs and was a contributing author of the NCEO’s Equity Compensation Update publication.

James E. Staruck
Senior Vice President
GreatBanc Trust Company

James Staruck is Senior Vice President of GreatBanc Trust Company's Qualified Retirement Plan Services group, specializing in ESOP transactions and special fiduciary assignments. His ESOP responsibilities include negotiation and structure of purchases and sales of public and privately held companies by ESOPs, and his special fiduciary responsibilities include the negotiation and approval of settlements on behalf of qualified retirement plans involved in stock drop litigation under ERISA and related claims under the federal securities laws and determining the prudence of maintaining employee stock in qualified retirement plans other than an ESOP.

Prior to joining GreatBanc Trust Company, which is one of the largest independent ESOP trustees in the United States, Jim practiced law at a large Chicago law firm where he focused on mergers and acquisitions, including acquisitions and sales of privately held companies by ESOPs, debt and equity financings, and general corporate law.

Jim received a juris doctor from the DePaul University College of Law and a master of business administration degree, with an emphasis in finance, from DePaul University’s Kellstadt Graduate School of Business. Mr. Staruck received a bachelor of science degree in finance from the University of Illinois at Champaign-Urbana. Jim has co-authored multiple articles on the duties of fiduciary trustees.
Greg Hart
Associate
 
Gregory Hart advises A/E and environmental firm clients on financial matters such as business valuation, fairness and solvency opinions, ownership transition planning, ESOP-related services, mergers and acquisitions advisory services, and financial management.
 
Mr. Hart began his career as an environmental scientist with GEI Consultants, Inc., a nationwide environmental, geotechnical, and water resources engineering firm where he provided environmental consulting services to clients in the areas of manufacturing, power generation, and real estate development.
 
After that, Mr. Hart was with The Spofford Group Insurance Brokerage Ltd. where he focused on structuring non-traditional environmental insurance solutions designed to manage business and liability risks and to facilitate real estate,merger and acquisition, and similar transactions.
 
Mr. Hart holds an MBA from the Syracuse University School of Management as well as a Bachelor of Arts degree in Environmental Science from the University of Massachusetts.

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