ESOP Blog

We have completed 400+ transactions with over $2.5 billion total assets under our administration.

An Introduction to ESOP Valuations

September 23, 2022

ESOP valuations are a critical component of every employee stock ownership plan (ESOP). Accurate valuations are most obviously necessary in order to ascertain the value of employee shares, but they are also needed well before an ESOP is established. For instance, companies need to conduct an ESOP valuation in order to determine the feasibility of…

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ESOP vs ESPP – What’s the Difference?

September 16, 2022

Employee stock ownership plans (ESOPs) and employee stock purchase plans (ESPPs) are both attractive employee benefits that help participants save for retirement and build wealth. They each encourage employee investment in the business in both a literal and figurative sense, which can aid in retention efforts while boosting employee satisfaction and productivity. Many business owners…

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ESOP Accounting Guide: What You Need to Know

September 13, 2022

Employee stock ownership plans (ESOPs) are a terrific benefit to employees and a smart financial tool for many businesses, but they do impact company financial statements in unique ways. In this post, we provide a quick primer on ESOP accounting so you can better understand these impacts. ESOP Accounting Authority and Background Both leveraged and…

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Family Business Succession Planning: What You Need to Know

August 31, 2022

Succession planning is one of the most emotional and challenging aspects of running a family business. Family business succession planning requires owners to look to the past and the future, be honest with themselves about their successor options, and open doors of communication that have been left firmly closed until now. Through it all, they…

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ESOP Rules and Regulations 101

August 23, 2022

Employee Stock Ownership Plans (ESOPs) are an attractive solution for business owners and companies that want to reward their employees for their contributions to the business. They are also an effective solution for business owners who want to retire, transition out of the business, or create a succession plan. Finally, the tax advantages and corporate…

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Top 5 Benefits of an ESOP

August 16, 2022

An Employee Stock Ownership Plan (ESOP) is most well-known as being a type of qualified employee retirement plan. But there are many more benefits of an ESOP – to both employers and employees. ESOP Defined At the simplest level, an ESOP is a tax-exempt trust that is set up as a defined contribution retirement benefit.…

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What is an ESOP Distribution?

August 11, 2022

One of the biggest advantages to employees who participate in an Employee-Stock Ownership Plan (ESOP) is the retirement benefits received. Receiving those benefits is considered an ESOP distribution. There are several ESOP payout rules that must be followed in order for retired, terminated, or exited employees to receive their benefits and final distribution could take…

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ESOP Pros and Cons

July 29, 2022

Employee Stock Ownership Plans (ESOPs) have been available to businesses in the United States since 1974. There are approximately 6,500 ESOPs in the country today with about 32 million people participating in these types of employee benefit plans. ESOPs are most frequently used as an ownership transition vehicle for retiring business owners who don’t want…

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Why Succession Planning is Important

July 21, 2022

Business succession planning is a crucial, but often overlooked, element of business ownership. Many business owners are so focused on growth and maintaining company success that they never have time to consider what will happen to the business after they leave or retire until the time comes. While successful transitions can and do occur with…

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The 6 Steps of an ESOP Transaction

July 12, 2022

ESOP transactions are the foundation of any employee stock ownership plan (ESOP). Although the specifics of a transaction vary from company to company, the fundamental steps or processes of an ESOP transaction are consistent across industries regardless of the ESOP plan design or company size. There are 6 essential steps in an ESOP transaction, which…

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DISCLAIMER: The Articles displayed on this website do not constitute legal advice, nor do they substitute for the advice of qualified professionals. While the Articles displayed on this website are designed to provide information regarding the subject matter covered, we cannot guarantee the accuracy of any statements contained therein. If any legal advice or expert assistance is required, the services of qualified professionals should be sought.

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