Ownership Transfer Planning Models

The best way to demonstrate that an ownership transfer plan will work is to develop a detailed ownership transfer model. The model tests the long-term consequences of any proposed set of ownership terms and conditions and helps evaluate alternative ownership plan designs under a variety of future financial scenarios. Hall & Company has developed templates to create these models and test proposed ownership transfer plans. 

An ownership transfer plan will work if the model can demonstrate that:

• That the buyers can afford their proposed purchases
•  That the firm can meet its stock purchase commitments to retiring or departing shareholders.
• That the firm's financial health is maintained throughout the ownership transfer process.
• That stockholders receive a sufficient return on their investment in the firm's ownership.