2014 ESOP INVITATIONAL HOW AN ESOP TRUSTEE TEAM SHOULD PROPERLY AND - - PowerPoint PPT Presentation

2014 ESOP INVITATIONAL

MIC

ICHAEL EL R. HOLZ OLZMAN,

, ESQ

SQ.

PAR

ARTNE NER

DIC

ICKINS INSON WRI RIGHT PLLC

LLC WAS

ASHING INGTO TON,

, DC DC (2 (202) ) 659-6931

MHOL OLZMAN AN@DIC ICKIN INSON ONWRIG IGHT.COM

NEIL

EIL M. BRO ROZE ZEN,

, CP CPA VICE PRE

RESID IDENT

BTC BTC ESOP SER

ERVIC VICES

MINNEA

EAPOLIS IS,

, MN (6 (612) ) 747 747-8671

NB NBRO ROZEN@BANKERSTRU RUST.COM

GRE

REGOR ORY J. HOGAN OGAN,

, ASA PRI

RINCIP IPAL AL

SC&H CAP

APIT ITAL AL,

, LLC LLC BALT

ALTIM IMOR ORE,

, MD (4 (410) ) 785-8023

GH GHOGAN OGAN@SCAN ANDH.COM

HOW AN ESOP TRUSTEE TEAM SHOULD PROPERLY AND DIL ILIGENTY ACQUIRE STOCK MARCH 24, , 2014

 HOW

OW DOES ES A TRU RUST STEE TEA EAM EV EVALUA LUATE THE TER ERMS AND ND CO COND NDIT ITIO IONS UPO UPON WHICH AN AN ES ESOP WILL PUR PURCH CHASE ST STOCK CK?

 TIMELIN

INE OF OF AN AN ES ESOP DEA EAL?

 ROLES

LES OF OF TRU RUST STEE TEA EAM MEM EMBE BERS RS

 WHAT

HAT ARE RE THE LEG LEGAL,

, VALUA

LUATIO ION &

& FIDUC

UCIA IARY CO CONSI NSIDER ERATIO IONS?

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 HYPOTHETIC

ICAL TRA RANSA NSACTIO ION TIMELIN INE

 3-4 4 MO

MONT NTH TI TIME ME FR FRAME

 TRA

RANSA NSACTIO ION DES ESIGN PH PHASE SE TYP YPIC ICALLY CO COMPLET ETE PRIO PRIOR TO TO TRU RUST STEE BE BEING NG EN ENGAGED ED

 COMP

MPANY ADVISO VISORS (F

(FINANCIAL AND

ND LEGAL GAL)

 VALUA

ALUATION ION,

, STR

STRUC UCTUR URIN ING AND AND FINANC NANCIN ING

 LEGA

EGAL IMPLIC ICATION IONS

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 SEL

ELECTIO ION OF OF PRO PROFES ESSIO IONAL ADVISORS RS

 TRU

RUST STEE AND ND FINA NANC NCIA IAL ADVISO SOR DEA EAL OVER ERVIE IEW

 ENG

NGAGEMEN ENT AGRE REEM EMEN ENTS

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 DUE

UE DILIG IGEN ENCE RE REQUE QUEST ST AND ND DATA RO ROOM ACCE CCESS SS

 KICKOFF MEE

EETIN ING

 COMP

MPANY BACKG CKGROUND

 TRANSA

SACTION STR TRUCTURE

 FINA

NANCING

 TIMELINE

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 KEY

EY ARE REAS FOR VALUA LUATIO ION AND ND LEG LEGAL DILIG LIGENCE

 HIST

STORICAL FI FINA NANCIAL RESU SULTS &

& ADJUSTMENTS  PROJECTIONS  COMP

MPETITIVE PO POSITION OF OF THE THE CO COMP MPANY

 COMP

MPANY SPE PECIFI FIC RISK FA FACT CTORS

 LITIG

TIGATION

 CORPOR

PORATE RECO CORDS DS

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 INI

NITIA IAL TER ERM SH SHEE EET

 FIDUCIARY OBLI

BLIGATIONS OF OF THE TRU RUST STEE?

 ESO SOP PA

PAYS YS NO NOT MO MORE THA THAN FA FAIR MA MARKET VA VALUE

 FINA

NANCING TE TERMS ARE ARE NO NOT MO MORE THA THAN MA MARKET

 OVER

VERALL FA FAIRNESS

 DEL

ELIV IVER ERY OF OF VALUA LUATION ANA NALYS LYSIS IS

 COMMIT

ITTEE EE MEE EETIN ING

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 KEY

EY DEA EAL ISSUE SSUES

 PUR

URCHASE SE PR PRICE

 FINA

NANCING TE TERMS FO FOR SELLER NOTE NOTES (INT NTEREST RATE TE &

& WA

WARRANTS)

 MANAGEMENT INCE

NCENTIVE PL PLAN

 EMPL

MPLOYMENT CO CONT NTRACTS

 CORPOR

PORATE GO GOVER VERNANCE ITE TEMS

 LEGAL TE

TERMS (IND NDEMN MNIFICATION,

, REPS

PS &

& WA

WARRANTIES)

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 NEG

EGOTIA IATING PRO PROCE CESS

 COUN

UNTER OFFE FFER BY BY TR TRUST USTEE TE TEAM

 IDENTIFI

FICATION OF OF KEY DEAL ISSUES

 FINA

NAL NE NEGOTIATIONS OF OF OPE PEN ITE TEMS

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 ENSUR

NSURE TRA RANSA NSACTIO ION DOCUM CUMEN ENTS MATCH CH LO LOI TER ERMS

 STOC

TOCK PUR PURCHASE AGR GREEMENT

 MANAGEMENT INCE

NCENTIVE PL PLAN

 SELLER NO

NOTES TES &

& WA

WARRANT AGR GREEMENTS

 REV

EVIEW OF OF FINA NANC NCING DOCUM CUMENTS

 PRE

REPA PARATIO ION OF OF FINA NAL VALUA LUATIO ION AND ND FAIRN RNES ESS OPI PINI NION

 FINAL CO

COMMIT ITTEE MEE EETIN ING

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 EXEC

ECUTIO ION OF OF ALL LL TRA RANSA NSACTIO ION DOCUM CUMEN ENTS



FUND UNDIN ING OF OF DEA EAL

Week

Term Sheet is Presente ted Final al LOI

1 15 14 13 12 10 9 8 7 6 3

Dilige igence Documentat tation ion Transac action tion Design Negotia iation ions

2 5 4 11 16

Engag age Trustee Team Closin ing

 FINANCIAL PRO

PROJEC JECTIO IONS

 DEA

EAL TEA EAM WITH LI LIMIT ITED ES ESOP EX EXPER PERIE IENCE

 BAD

AD FAITH ACT CTORS RS

QUESTIONS?

MIC

ICHAEL EL R. HOLZ OLZMAN,

, ESQ

SQ.

PAR

ARTNE NER

DIC

ICKINS INSON WRI RIGHT PLLC

LLC WAS

ASHING INGTO TON,

, DC DC (2 (202) ) 659-6931

MHOL OLZMAN AN@DIC ICKIN INSON ONWRIG IGHT.COM

NEIL

EIL BRO ROZE ZEN

VICE PRE

RESID IDENT

BTC BTC ESOP SER

ERVIC VICES

MINNEA

EAPOLIS IS,

, MN (6 (612) ) 747 747-8671

NB NBRO ROZEN@BANKERSTRU RUST.COM

GRE

REGOR ORY J. HOGAN OGAN,

, ASA PRI

RINCIP IPAL AL

SC&H CAP

APIT ITAL AL,

, LLC LLC BALT

ALTIM IMOR ORE,

, MD (4 (410) ) 785-8023

GH GHOGAN OGAN@SCAN ANDH.COM