For well over 40 years, the modern Employee Stock Ownership Plan (ESOP) has been successfully utilized as an exit / succession planning tool for privately held businesses and their owner / shareholders.  Owners that choose to adopt an ESOP for their business have the unique opportunity to achieve multiple objectives for themselves as shareholders primarily through potential capital gains tax savings, the company through yearly income tax savings, while also fulfilling their desire to incentivize loyal employees and maintain the legacy their business has garnered within their respective communities.


The ideal profile for an ESOP client is:

Owners looking to sell all or a portion of their business equity

Qualifying payroll of $1,000,000 or greater

Adjusted / Normalized EBITDA of $1,000,000 or greater

$5,000,000 or more in business equity value

20+ employees (S Corp) 5+ employees (C Corp)


Preliminary Assessment and Review (Day 1 to Day 30):


Review of corporate financials, determine goals and objectives of shareholders, and outline possible ESOP design strategies.

ESOP Design & Valuation Analysis: (Day 30 to Day 90):


Full ESOP design, stock sale transaction analysis, financial modeling, shareholder proceeds analysis, corporate restructuring, bank financing analysis (if required), education and collaboration with current professionals, and tax and legal planning related to proposed ESOP plan.

Implementation (Day 90 to Day 180):


Coordination and negotiation with ESOP Trustee Fiduciary Team through to closing, establishment of ESOP Plan and Trust documents, and placement and coordination of stock sale transaction financing.

Post-Transaction Employee Roll Out & Ongoing Servicing:


Presentation to company employees regarding the specifics of the ESOP Plan established and post-close assistance to the company, legacy shareholders, and employees to ensure smooth transition of the ESOP Plan into business processes and culture.