ForhemitBroker Deal Screening

Is your client a fit for an ESOP transaction?

This is the same checklist Forhemit uses internally to evaluate every deal submission. Work through it with your client's listing in front of you — no personal information is collected or stored at any point.

Early - Keep Going0/18 core items

Profile

Signals

Financials

Operations

Disqualifiers

Section 1

Quick Reference — The Ideal Client

Confirm your client matches this baseline profile before continuing.

Pass

Business type qualifies

Professional services, healthcare services, construction & trades, engineering, government contracting, or specialty manufacturing.

Pass

EBITDA is $3M or above

$5M–$10M is preferred. $3M is the minimum to make the deal math work.

Pass

20 or more full-time W-2 employees

15 is the absolute floor. 20+ is strongly preferred for plan participation and ownership culture.

Pass

No single customer above 35% of revenue

20% or below is preferred. Above 35% is a hard disqualifier.

Pass

Owner is motivated by legacy, willing to stay 12–24 months

Realistic about after-tax total proceeds vs. Day 1 cash. Not purely price-driven.

Pass

Management exists beyond the owner

Someone other than the owner is already running day-to-day operations.

Pass

7+ years of operating history

3+ years of tax returns and reviewed or audited financial statements available.

Step 1 of 5

ForhemitBroker Deal Screening

Is your client a fit for an ESOP transaction?

Early - Keep Going0/18 core items

Profile

Signals

Financials

Operations

Disqualifiers

Section 1

Quick Reference — The Ideal Client

Confirm your client matches this baseline profile before continuing.

Pass

Business type qualifies

Professional services, healthcare services, construction & trades, engineering, government contracting, or specialty manufacturing.

Pass

EBITDA is $3M or above

$5M–$10M is preferred. $3M is the minimum to make the deal math work.

Pass

20 or more full-time W-2 employees

15 is the absolute floor. 20+ is strongly preferred for plan participation and ownership culture.

Pass

No single customer above 35% of revenue

20% or below is preferred. Above 35% is a hard disqualifier.

Pass

Owner is motivated by legacy, willing to stay 12–24 months

Realistic about after-tax total proceeds vs. Day 1 cash. Not purely price-driven.

Pass

Management exists beyond the owner

Someone other than the owner is already running day-to-day operations.

Pass

7+ years of operating history

3+ years of tax returns and reviewed or audited financial statements available.

Step 1 of 5