What if you could capitalize on the wealth you’ve created, ensure the future of your family and employees, and maintain a meaningful role in the business you’ve worked hard to build? It’s possible with an ESOP.
Since 2000, CSG Partners has helped middle-market companies realize the unique benefits of employee stock ownership plans (ESOPs). Private business owners and shareholders of family businesses who seek liquidity, diversification, and tax relief turn to our nationally-recognized team of advisors. We’ve guided hundreds of clients through the ESOP formation process, from analysis, through capital raising, to closing.
Employee stock ownership plans (ESOPs) enable privately-held companies to sell shares to an employee trust. Owners receive fair market value for their equity and can gain significant tax benefits for themselves and their companies. Employees gain a valued retirement benefit (company stock). This is not a stock option plan. Instead, it’s an ERISA-authorized, defined contribution plan that invests in employer securities.
A trust representing at least 10 employees.
The price is negotiated with an institutional trustee, based on an independent valuation.
Commercial and/or seller financing, paid-off with pre-tax corporate cashflow.
Full-time employees are allocated shares proportional to their annual compensation.
A portion of all shares is allocated annually; the shares vest within 3-6 years.
Vested stock is sold back to the company, at a current valuation, when employees depart or retire.
If you’ve thought about selling your business, or if you've considered other opportunities to take money off the table and still secure your legacy, 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.