In this session, we will take a look at the initial transaction from two different perspectives on the company's cash flow and sustainability as an ESOP and will consider how those two perspectives will meld together over time. From a banking and immediate feasibility perspective, we'll look at the factors in determining the debt load on the company and the impact of different structuring techniques. From a long-term administrative perspective, we'll look at setting up a sustainable level of benefit through appropriate internal ESOP loan terms and establishing a thoughtful distribution policy from day one to ensure you are providing a proper benefit level that doesn't force the company into difficult decisions down the road.
Learning Objectives:
Understand the difference between distribution policies
Identify what steps the company can take to manage employee benefit levels
Learn how different debt structures impact the company's short-term and long-term cash flow
