Western Comfort ESOP Transition Readiness

Abstract

The founder of Western Comfort wishes to retire within the next three to five fiscal years and needs to evaluate if a transition in the organizational model from an S-corporation with a single stock owner to an S-corporation with an ESOP is the best direction for the organization to pursue. The purpose of this study isto research, evaluate and make recommendations of operational readiness forimplementing change for Western Comfort from an S-corporation with a single stock owner to an S-corporation with an ESOP. Research results of this study willestablish a current state, and define a road map to ensure the organizational outlook remains both financially viable with a strong organizational culture in place prior to his retirement. To evaluate transitional readiness for Western Comfort a two-phased approach will be utilized. A financial survey audit will be conducted for the fiscal years of 2012-2016 to ensure the organization is financially healthy to support the desired change. Secondly, a culture readiness survey will be administered to validate that the culture within the organization is ready to transition to an ESOP. For both, informed consent procedures will be used to ensure data is collected in accordance with IRB protocol.