Sacramento 916-357-5660 | Los Angeles 310-571-8896 | San Jose 408-467-3860

    ESOP: The Executive Short Course

    Find Answers to Your Most Important ESOP Questions

    What are employee stock ownership plans (ESOPs) and why do business owners choose them? How do ESOPs compare to other succession planning options, in what types of companies are they most advantageous, and how are they set up?

    On this page, you will find concise answers to those questions, arranged in an order that helps to build a progressive understanding.

    Start by watching the short videos to learn about each topic’s key points and then review the accompanying materials to explore the details.

    ESOPs: Best Known Benefits

     

    ESOPs are tax-deferred succession plans for business owners, tax-deferred retirement plans for employees and good for companies.

    ESOP Vs. Third-Party Sale

     

    The decision to choose between an ESOP or a third-party sale should be specific to the seller’s goals and company’s benefit, and always well-informed.

    Is My Company Ready for an ESOP?

     

    Not all companies are “ESOP ready,” and some companies in certain industries may never be. A lot depends on revenue and size.

    How an ESOP Is Created

     

    Every company is different and the most successful ESOPs are individually designed and assembled to serve specific purposes.

    What’s Next?

    By now you might be wondering, “Is an ESOP suitable for my company?”

    Size and cash flow are just part of the answer. “Suitability” must consider the needs of the sellers (e.g., liquidity, legacy and tax planning), corporation (e.g., governance, strategic planning and succession), executive management (e.g., benefits and leadership) and family (e.g., inheritance and wealth).

    We have a specific process for identifying issues, advantages, trade-offs, concerns and alternatives to arrive at a balanced solution for all affected. There are many ways to use – or not use – an ESOP to meet the needs of all involved. Let’s start the conversation about ESOP suitability for your company.