Schwartz Heslin Group, Inc.
TRUSTED BUSINESS ADVISORS SINCE 1985
Case Studies
We seek to provide our clients with objective, independent advice to help them achieve their most difficult challenges.

Case Studies


Employee Equity Option Valuation

OVERVIEW                                                                                                       

Founder owned business seeks to retain and attract superior talent by offering an equity option plan for senior management and key executives. Company maintains a corporate staff of over 300 and has offices across the northeast. Clients include major banks, retailers, hospitals, technology firms and government agencies.

Situation – “Equity Options for Talented management”                                                           

SHG’s client had been experiencing over five years of double digit annual revenue growth and as such required significant investment in its personnel resources to manage an ever growing business. As the company doubled in size to more than 300 employees over the past few years, the founder determined a need to attract new top tier talent and to retain existing personal. SHG was hired to assist in the implementation of an equity ownership plan, the most common form of which is an EMPLOYEE STOCK OPTION PLAN. Continued growth without an ability to attract talented team members would risk the company’s ability to meet its growth initiatives.   

The SHG PROCESS                                                                                         

  • SHG begins every engagement with a comprehensive review of the company’s operations, financials, industry, competitive positioning, and performs general due diligence.
  • The SHG valuation team, led by a Certified Valuation Analyst (“CVA”) met with the client at their offices to meet senior management, review the client’s offices, infrastructure and better understand our client’s business model and value creation.
  • The valuation was performed by combining multiple valuation methodologies including discounted cash flow, comparable transactions, public trading comparables and asset based valuation.
  • SHG combined its company analysis with sector and macroeconomic review to draft a comprehensive valuation report covering all aspects of the company and the valuation performed.

Results                                                                                                                                                             

SHG continues to provide updated valuations for the company as needed to maintain and support its equity option plan. Our client has continued its spectacular growth and has successfully implemented its plan to develop and retain its human capital.