Who can Benefit from an ESOP?

Effective employee stock ownership plans create a concrete reward structure for companies, selling shareholders, and employees alike.

ESOPs can Create Value for all Stakeholders

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Owners

  • Paid fair market value for their business
  • Can defer capital gains taxes on proceeds
  • Maintain upside potential & a role in the company

Companies

  • Receive tax deductions on sale amount
  • Can become income tax-free entities
  • Get a tool to retain & attract talent

Employees

  • Secure a unique retirement benefit
  • Earn a real stake in their companies
  • Gain workplace stability & peace of mind 

What About a 100% Employee-Owned Business?

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An ESOP is an ERISA-authorized, defined contribution plan that invests in employer securities. These plans are tax-deferred. 

As a result, an employee-owned S corporation can operate income tax-free (federal & state) in most jurisdictions.

100% ESOP-Owned S Corps can
Increase Cash Flow by up to

100%

compared to similar, non-ESOP S Corps.

Companies from all Industries can Benefit from an ESOP

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At CSG Partners, we've completed hundreds of ESOP transactions for a wide range of businesses across the US.

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Apparel & Consumer Goods
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Business Process Outsourcing
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Construction & Engineering
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Dining & Hospitality
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Financial Services
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Government Contractors
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Healthcare & Wellness
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Manufacturing & Industrial Materials
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Marketing & Communications
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Recruiting & Staffing
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Technology & Software
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Transportation & Trucking

Want to Learn More?

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Since 2000, CSG Partners' nationally-recognized, investment banking team has helped private companies capitalize on the benefits of ESOPs.

Join our founder, Larry Kaplan, for a compressive introduction to ESOPs. You'll learn more about key ESOP benefits, tax efficiencies, structures, valuations, financing, and typical "good fits."

For additional news and insights from our advisors visit our ESOP Resources page.

CSG - Understanding ESOPs (Vistage Atlanta 26Aug20)

 

Could an ESOP be Right for You?

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If you’ve thought about selling your business, or if you've considered other opportunities to take some money off the table, a leveraged ESOP may be an attractive option. Answer a few simple questions to see if it’s worth exploring an ESOP plan for your business.

TAKE THE QUIZ

Information For:

Careers

CSG does not offer and does not purport to offer tax, investment, regulatory, accounting or legal advice, and this information should not and cannot be relied upon as such. Securities, mezzanine debt and equity are offered by Synergy Capital I LLC, a wholly owned subsidiary of CSG Partners. Synergy Capital I LLC is a member of FINRA and SIPC.

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