Secure the Legacy of Your Business with an ESOP

Our team of ESOP CPAs can help you determine whether selling to an ESOP is the right choice for you and your business. Most importantly, we can help you design and implement your ESOP strategy with experienced professionals, maximizing value to the selling shareholders, the business, and their employees.

What Is An ESOP?

An ESOP (Employee Stock Ownership Plan) is a qualified retirement plan that can provide significant tax benefits for a business and the selling shareholders. For the employees, an ESOP offers substantial retirement benefits. It delivers an excellent business succession alternative to selling a business to an unrelated third party that can benefit all parties involved.

Why Consider an ESOP?

Our ESOP CPAs understand that employee ownership impacts the business’s financial position. We will work with you to make sure all the proper processes are in place to manage and accurately report the ESOP activities within the business’s financial statements and tax returns.

ESOPs are Ideal for

• Businesses who have been operating for more than 3 years
• Businesses with more than 20 employees
• Businesses who are profitable with cash flow sufficient to service debt
• Businesses with a capable succession management team
• Owners who have a desire to gain liquidity and “lock-in” value
• Owners who don’t plan to immediately exit the business completely
• Owners that wish to maximize after-tax returns in a gradual or “staged” sale of the business

Benefits of Being An Employee-Owned Business

Employee ownership is more than an ownership structure - it’s a powerful strategy to strengthen companies, reward employees, and preserve legacies. Transitioning to employee ownership offers lasting advantages for both owners and employees.

For business owners this means:

• Smooth Succession: Transition ownership without selling to outside investors, ensuring continuity of culture and mission.
• Tax Advantages: Take advantage of significant incentives — from tax-deductible contributions to potential mitigation of federal income tax for certain ESOPs.
• Improved Performance: Studies show employee-owned companies consistently achieve stronger growth, profitability, and resilience.
• Talent Retention & Recruitment: Stand out in a competitive labor market by offering employees a vested stake in the business’s success.
• Legacy Protection: Keep your business locally rooted and committed to employees, clients, and local community for generations to come.

Employees working with ESOP companies can expect:

• Wealth Building: Employee owners gain valuable retirement benefits and equity growth, often at no personal cost.
• Engagement & Motivation: Ownership inspires employees to think like business partners, driving innovation and productivity.
• Job Security: Research shows employee-owned companies experience fewer layoffs and more stability during economic downturns.
• Stronger Voice: Many employee-owned companies foster greater transparency, collaboration, and shared decision-making.
• Shared Success: When the business thrives, so do its employee owners — creating a culture of shared achievement.