The Pal Employee Share Ownership Plan

For Succession, Exit Planning and Employee Ownership

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A guaranteed method of sale. Don't stress about finding a buyer!

Greater employee retention and involvement. Have your employees thinking and acting like owners.

Hassle-free, sit back and relax. Let us take care of the entire process for you.

The Pal ESOP

Who is it for?

Tailored for Australian SMEs poised for transition, the Pal ESOP is ideal for

+5 Employees & Profitable

$2,000,000+ Revenue

Legacy & Employee Ownership

Businesses with 5+ employees demonstrating robust profitability.

Enterprises generating over $2,000,000 in revenue, seeking structured succession or exit strategies.

Visionary owners committed to preserving their legacy and empowering their workforce through shared ownership.

That's me! I'm interested!

What are the benefits?

The Pal ESOP has many benefits but here are 3 major ones!

Benefit 1 Image
A Guaranteed Sale

  • Exclusive Opportunity: Only 20% of businesses achieve a successful exit. Be one of them with a Pal ESOP.

  • Sell to Your Team: Empower your employees by selling your company to them, ensuring continuity and commitment.
Benefit 2 Image
Employee Retention

  • Ownership Incentives: Employees earn shares that appreciate with the company, incentivizing long-term commitment.

  • Golden Handcuffs: The Pal ESOP introduces a beneficial constraint that rewards loyalty and deters turnover.
Benefit 3 Image
Employee Owners

  • Empowerment through Education: The Pal ESOP is a journey, not just a transaction, enhancing skills for business continuity.

  • Focus on Passion: Free yourself from operational demands to concentrate on what you love about your business.
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How Does The Pal ESOP Work?

The Pal ESOP allows you to sell your business to your employees

The current shareholders sell all or some of their shares to an Employee Share Trust (EST).

The sale is done through a loan to the EST, with or without interest.

Share sale to Employee Share Trust

The company sets a profit target, any profit above the target is used to pay off the loan.

Once any interest is paid, the rest is used to pay down the principal and buy shares for the employees.

Achieving profit target for share purchase

The shares that are purchased are then allocated to the employees through the Employee Share Ownership Plan (ESOP).

The shares are restricted for a maximum of 15 years, deferring the tax for the employees.

Restricted shares in ESOP

Once the original loan is paid off, employees who have shares that have passed the restriction may elect to sell back to the ESOP.

The shares can only be sold if there is profit above the target.

Employee share sell-back option

Any dividends on EST shares that have not yet been allocated to employees (Owner Loan Shares) can be used to pay for ESOP administration.

Shares allocated to employees, restricted or unrestricted, will be paid the dividend.

Dividends for ESOP trust administration

This is a simple explanation of how the Pal ESOP works. Want a detailed version? Click the button below.

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Got Questions?

Explore our FAQs on the Pal ESOP below.

The Pal ESOP is crafted for cost efficiency, ensuring you don't face the steep fees common in the industry.

Forget about the $60,000 price tag. And don't even think about $30,000.

Our Pal ESOP comes at a transparent, fixed fee of $24,999 + GST. Experience unparalleled value without the premium cost!

The Pal ESOP package is comprehensive, designed for easy implementation and to enlighten your team. Here's what you get:

  1. An in-depth valuation necessary for offering equity to employees, valued at $12,999.
  2. Comprehensive drafting of the share plan, trust deed rules, and the offer letter, valued at $11,599.
  3. An educational session on equity and the advantages of employee ownership, valued at $8,999.
  4. An online offer detailing the equity offered, including a plan handbook for employee reference at any time, valued at $6,399.
  5. Various cheat sheets for owners, accountants, and other stakeholders to demystify complex aspects, valued at $7,999.
  6. An employee financial understanding survey, valued at $2,999.
  7. A session on financial literacy, enabling employees to understand financial statements and their impact, valued at $8,999.
  8. An option to purchase ongoing ESOP administration at a discounted rate. This includes tax reporting, vesting tracking, managing future employee offers, and employee sessions, plus access to an equity professional for both you and your employees.

The total estimated value of these services is approximately $59,993!

All available for a fixed fee of $24,999 + GST.

While the Pal ESOP is priced at $24,999 + GST, significantly below its estimated value of $59,993, you might wonder how we manage this. The answer lies in our commitment to long-term partnerships rather than immediate profits.

Our primary focus isn't on the initial setup fee; instead, we derive our success from the ongoing management of ESOP plans. This approach allows us to invest in our relationship with your business, ensuring we're there to support you and your employees over the long haul.

We see the implementation of Employee Share Ownership Plans (ESOPs) as the beginning of a journey. Through ongoing administrative services, we're able to offer continued support, whether it's helping employees understand their equity, providing assistance with accounting, managing ESS tax reporting, or offering refresher sessions on financial literacy. We're also equipped to create custom surveys to gauge employee perceptions of the business and the ESOP.

This long-term partnership model allows us to make the initial setup of ESOPs accessible while ensuring we can offer valuable, ongoing support to you and your employees for as long as you have an ESOP.

Ideal for Australian SMEs, the Pal ESOP fits:

  • Companies with 5 or more employees
  • Profitable businesses with revenue exceeding $2,000,000
  • Business owners seeking structured succession or exit strategies
  • Visionaries committed to preserving their legacy and empowering their workforce through shared ownership

Absolutely! The Pal ESOP is versatile:

Designed for succession, it's equally effective for partial equity sales or granting ownership percentages to employees.

It's a powerful tool to reward dedication, promote growth, and enhance retention and sustainability within your company.

We offer tailored solutions for various company stages and goals. While custom plans are available, consider our specialized plans for a more immediate fit:

More Questions? Schedule a call with us!