When considering whether to transition your company to an Employee Stock Ownership Plan, one critical decision is whether the selling shareholder(s) should elect to defer (or avoid) capital gains taxes under IRC Section §1042. In our previous article, we outlined the importance of feasibility …
The Importance of Feasibility Studies in ESOP Planning
When a business owner is considering whether to sell to an Employee Stock Ownership Plan (ESOP), thorough planning should be undertaken to understand the likely outcomes to the selling shareholder (s), the Company, and the soon to be ESOP participants. One of the key steps in the early stages …
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Selling Your Business: Understanding an ESOP
When considering ownership transition options, it's important to understand the various types of buyers and their implications. Among these options, selling to an Employee Stock Ownership Plan (ESOP) presents unique advantages as well as some potential drawbacks. Potentially the most flexible and …
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Is an ESOP Right for You?
In this podcast, we look at the fundamentals of ESOPs, their benefits, drawbacks, and when and where they are a good fit for a business owner who is seeking a transition of ownership. ESOPs offer business owners a viable exit strategy, especially if they do not have a clear succession plan. …