ESOP Tips for Business Advisors

If you’re an attorney, an accountant, or a financial advisor, you probably have clients who could benefit from a liquidity event, but wouldn’t dream of selling their closely-held companies.

A leveraged ESOP may be the best option.

See how employee ownership strategies compare to other M&A options.


M&A Isn't Always the Answer

Whether business owners are concerned about damaging their legacies, abandoning trusted employees, or giving up on potential multi-generational assets, their fears are valid and, at times, stifling. Even if they ultimately settle for a traditional third-party or private equity transaction, the capital gains tax burden can often be painful.

Employee Ownership is a Meaningful Alternative

Employee stock ownership plans offer private companies and family businesses a tax-efficient, liquidity opportunity. A company’s stock is sold to an employee trust at a fair market valuation. The transaction is funded through commercial and/or seller financing (often without personal guarantees) and paid-off with pre-tax corporate cash flow.

This frees shareholders’ capital and provides meaningful incentives to their companies and employees.

Developing an ESOP Strategy

See how employee ownership strategies can help stakeholders attain their unique goals. Join Larry Kaplan, CSG’s Founder and Managing Partner, for a walk-through of the leveraged ESOP feasibility, structuring, and financing process in this brief video.

Based on real client interaction, this case study highlights the key considerations and strategies behind a successful employee stock ownership plan transaction.

More Employee Ownership Insights from our Team

For additional employee ownership tips and insights, check out our most popular educational materials, prepared by our ESOP experts.

Why do Leading Advisors and Relationship Managers Trust CSG?

We've guided companies nationwide – from feasibility studies to financing and completed transactions – though the employee ownership process.

Our focus on education, and our commitment to honoring advisor-client relationships, has led to hundreds of ESOP formations and numerous awards from leading organizations.

40+ ESOP Firm and Deal of the Year Awards