ESOPs for Healthcare

 

When practitioners and medical entrepreneurs want liquidity strategies that prioritize independence, continuity, and tax efficiency, they choose employee ownership.

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A Private Equity Alternative

Employee stock ownership plans enable closely-held healthcare providers and companies to sell equity, at fair market value, to an employee trust. 

Staff do not pay out of pocket. Instead, ESOP sales are financed transactions. Think of it as an internal leveraged buyout.

In addition to continued autonomy, employee-owned firms gain meaningful tax breaks and efficient tools to expand or transfer ownership. Meanwhile, selling shareholders can defer capital gains burdens on their proceeds.

Cash

Liquidity & Upside

Sellers get fair market value, can defer capital gains taxes on proceeds, and may retain equity post-ESOP sale.

Gears

Operating Efficiencies

Practices receive tax deductions and can become income-tax-free entities. These savings may fund growth initiatives.

People

Staff-Wide Benefits

Future partners gain meaningful, affordable buy-in options, while staff earn stock allocations.

An ESOP in Context

Larry Kaplan, CSG’s Founder and Managing Partner, shares the motivations and structuring considerations that drove a medical practice's recent ESOP transaction.

This abbreviated case study highlights the unique financial and practical benefits of employee stock ownership plans.
 
 
 
 
 
 

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