ESOP Advisory

Acuity Advisors has a wide range of experience and knowledge in the areas of Employee Stock Ownership Plans (ESOPS). Your business has skyrocketed and its time to share that success with a few select employees that have helped get you to this point. These decisions may be made because you are ready to retire or wish to build loyalty and motivation across your entire labor pool.

If this sounds like your specific situation then you are a perfect candidate for ESOP Advisory. It is the ideal solution for owners who are looking to either partially or completely exit their business. Providing liquidity can make these goals attainable. Owners will be able to monetize their positions to a tax-advantaged basis while gaining the opportunity to structure succession planning.

ESOPs have been used successfully by thousands of noteworthy private and public companies since Congress enacted the legislation in 1974.

ESOP Advisory

  • The business owner is asset rich and cash poor and wants to monetize a portion of his or her largest and most illiquid asset, but does not want to sell the entire company.
  • The business owner wants to start a new business with proceeds that can be generated by an ESOP.
  • The business owner is proactive and wants to establish a vehicle for a future exit strategy.
  • Major shareholders’ goals and desires regarding the business have changed.
  • The business owner wants to provide an employee benefit tied to company performance, while still achieving other goals.

When appropriate, ESOP Advisory services provide a way for the selling shareholder to defer and, in many cases, eliminate the capital gain on the sale of their interest. At the same time, subject to certain limitations, the company may also deduct both principal and interest in the repayment of the loan used to buy the selling shareholder’s stock. Check out our blog to find out more about ESOP Pros and Cons.

The following are a selection of ESOP clients represented by Acuity Advisors:

To find out more about M&A Advisory or Valuation services check out our blog.