Liquidity with Minimal Tax Loss?

It’s possible with an Employee Stock Ownership Plan.

Your Clients Expect Dependable, Tax-Efficient Solutions

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Whether you handle accounting for businesses or for estates, you’ve probably encountered a liquidity crossroads.  A client wants to monetize their privately-held company, but they have capital gains and estate tax concerns, and they’re hesitant to give up autonomy.  Strategic sales and private equity transactions rarely meet these needs.

ESOP – A Tax-Advantaged Alternative

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An ESOP is an ERISA-authorized, defined contribution plan that invests in employer securities.  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 and paid-off with pre-tax corporate cashflow.  This frees business owners’ capital without sacrificing their legacy, creates a unique employee benefit, and carries a host of potential tax-related advantages.

Asset Transfer

1042 Rollover

Business owners who sell at least 30% of their company to an ESOP trust can defer or eliminate capital gains taxes on the sale proceeds by reinvesting in a qualified replacement property.

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Corporate Tax Mitigation

Companies can deduct the sale value to reduce taxable income, and income taxes can also be permanently eliminated when a company is 100% employee-owned.

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Estate Planning

Business owners can make gifts of retained interest to family and prepare for estate tax burdens at a time when a company’s value is depressed by leverage.

We Can Help

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Leading accountants trust CSG Partners to analyze, structure, finance, and close complex ESOP transactions for their clients.  Our focus on education, and our commitment to honoring advisor-client relationships, has led to hundreds of completed transactions and numerous industry awards.

Want to Learn More? Let’s Connect.

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Whether you need a full ESOP primer or a couple of questions answered, we’re here to help.  Follow the link below to schedule a call or video chat with one of our team members.

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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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