Why should you evaluate your option pool
and educate your employees?
3 Key Reasons
1. Employees are yor #1 asset
Your employees are your best asset . The value of your company depends on their
work . They are the value
creator of the company.
2. Consider their financial knowledge
As financial laymans, risks taken by employees are huge regarding their financial knowledge & portfolio diversification.
3. Reward their loyalty
The employee pool is dedicated to those who stay. The grant mechanism with cliff and vesting
period « securise »
What is the link between risk and valuation?
Place your bets.
In Finance, the risk premium is the extra return for investors who take the risk to buy an asset.
Consider two similar bonds, issued by the same company, one with some preferential rights or clauses, the other one without, consequence - the price will be lower for the bonds with no additionnal rights. Thus, the asset price is defined by the risk taken by investor. Share class of a company are very similar to bonds with preferential rights and clauses.
At Ekwity, we truly believe that the risk taken by employees is far much higher than for professionnals investors. We consider their financial and professionnal investment in the company as a priceless asset. Their knowledge, the absence of preferential rights and fiidelity should conduct to a specific valuation.
Why should you work with Ekwity ?
Sharing value is complex
We provide strategic support to master and explain the mechanism between HR, finance, legal and taxation.
ESOPs are a strategic tool for startups: to attract and retain the best talent.
There are a multitude of stakeholders to manage: lawyers, accountants, auditors, shareholders
and most importantly
What support does Ekwity provide?
A multi-lateral approach
Diagnostics and Benchmarks:
First Valuation parameter definition
General Analysis (legal, shareholding structure, founders ...)
Design and Modelization:
Computation of Ekwity proprietary adjustment variable
Communications and Training:
Ekwity’s Valuation methodologies
Ekwity Discount methodologies application
Final Report with ESOP Valuation
For a tailor made solution,
please contact our team.