ESOPs & fairness opinions

I am speaking with a MM firm whose biggest business is ESOPs, but also does other traditional IB activities such as M&A, recaps, etc. I would like to hear thoughts on the skill set, exit opportunities, etc on firms who specialize in ESOPs and fairness opinions. Thanks.

8 Comments
 

ESOPs are a unique animal, but the community that services them is small, so if you do well you can build a good reputation quickly. I know of several people that went from doing ESOP valuation/fairness opinion work to MM IB, most after a few years and a CFA. Would this firm happen to be in the Midwest? I was in the space on the legal side prior to b school, so if you want specific input feel free to pm me.

 

Agree with kingtut, although the most interesting work is done on the (typically) front end when the stock transaction occurs between the ESOP and the selling shareholders. For the ongoing maintanence, from what I've seen, it's mostly a matter of rerunning comps, finding new precedent transactions and updating the dcf... think rinse, wash, repeat.

 

i wouldn't expect "street" comp, but you'll be fine... just remember that even with "below street" pay, you still make more than anyone else you went to college with, and likely most of your friends' parents.

 

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