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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Selling Your Business: Financial Buyer Pro’s and Con’s
The term “financial” buyer is often used in the context of buyout offers made by institutions including private equity firms, family offices, or investment arms of public or private companies. While private equity firms and family offices both fall under the umbrella of financial buyers, these …
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