Employee-Owned Companies (ESOP)

Employee Stock Ownership Plans (ESOP) can be an advantageous option for succession planning.

As a business owner, you have several options to consider when planning for exit. In an ESOP, participants are beneficiaries of the stock, and the ownership and management teams continue to run the day-to-day of the business. When it comes time to sell, an ESOP allows employees to benefit from the sale of a business. 

While there are several advantages to ESOPs, they are also very complex to navigate. Whether it is communication with employees, coordination of the service providers involved, help with structuring the plan, or managing the repurchase liability, it's important to understand the accounting and tax requirements that accompany this unique ownership structure.

ESOP Capabilities

We help businesses make sense of the ins and outs of ESOPs through the following services:

• ESOP feasibility studies, including entity and transaction structuring
• Initial ESOP analysis and succession planning
• Corporate audit and tax compliance for ESOP sponsor companies
• ESOP accounting consulting
• ESOP audits
• ESOP M&A
• Mature ESOP consulting and compliance
• ESOP sustainability, including repurchase obligation and long-term valuation analysis