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OWNERSHIP CAPITALIZATION & COMPENSATION PLANS (OCCPs) and
INTERNAL OWNERSHIP TRANSITIONS (IOTs): EFCG assists
architectural, engineering and consulting firms to evaluate,
modify and develop their approaches to employee ownership,
compensation and capitalization plans ("OCCP"). For
employee-owned firms, OCCPs address three goals: maintaining
internal or employee ownership, adequacy and appropriateness of
compensation, and the adequacy of capitalization to enable the
firm to finance its internal growth while, at the same time,
providing liquidity for retiring, or otherwise departing,
employee shareholders. Almost every engineering and consulting
firm has a different approach to this, and the challenge to meet
these three different objectives is particularly critical to
professional services firms and highly sensitive to the unique
culture of each firm.
Designing an
OCCP also requires an approach to deal with internal owernship
transfer ("IOT"), avoiding the need for a company to sell out to
a third party when it comes time for founders or senior owners
to retire or liquify their equity positions. Helping e/c and
architecture firms accomplish this on a prudent and sustainable
basis is one of our primary specialties, and we have been
assisting A/E/C firms with their own plans for 15 years. |
