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.