CSG in the News - Summer 2023

Advisor Talk, CNBC, and Exitology Logos

August 18, 2023 CSG Partners Staff

National media and number of top-rated podcasts sought out our experts for their perspectives on employee ownership benefits and tax advantages, as well as the threat posed by the Silver Tsunami. Read ahead for highlights and complete content links.


CNBC Quotes Lawrence Kaplan

Employee Stock Ownership Plans (ESOPs) can be a Good Source of Retirement Income

An ESOP is a tax-advantaged retirement plan where employees receive shares of the company’s stock, usually at no cost to themselves. That means if the company does well, employees participating in the ESOP benefit. What makes ESOPs particularly attractive to employees is that you don’t typically have to contribute to the plan as you would with a 401(k) or IRA. Instead, the employer funds it.

“There’s no financial commitment from employees [and] nothing really for employee[s] to think about,” Lawrence Kaplan, founder and managing partner of CSG Partners... An ESOP can provide a big boost to your retirement savings, but keep in mind its value is all tied to your company’s stock. If your company goes bankrupt, you’ll be wiped out, too. For this reason, Kaplan suggests having an ESOP in place along with a 401(k) plan. This is also known as diversifying your retirement income. 

The complete article is available on CNBC.


Cracking the Cash Flow Code Interviews David Blauzvern

Decoding ESOPs: Unleashing the Power of Employee Ownership

"100% S corp ESOP's are the state of Nirvana in the ESOP world. It's when the company's corporate cash flow essentially becomes 100% tax-free at the federal level and most state levels. Now, I say 'most' because, for example, if you're in California, you can't escape the 1.5% franchise tax. But, generally speaking, your corporate income becomes 100% tax free."

Blauzvern adds, "If you're at the point where you've already de-levered the initial ESOP transaction, you're generating significant cash flow that’s builds up on your company's books... You can then use that cash for general working capital purposes or to make acquisitions."

Blauzvern's full interview is available on The Sustainable Business.


Advisor Talk Podcast Interviews Steve Berman

The What and Why of an ESOP Plan

"Each employee is going to get stock put into their account based upon what their W-2 compensation is relative to others. Somebody making $200,000 a year will get twice as many shares in their account each year compared to someone making $100,000."

Berman continues, "Each year, there will be an updated valuation. And each year, they'll get a statement that will tell them how many shares are in their account, what the most recent value is, and how much has been vested. That's because an ESOP generally has a vesting program, just like any benefit plan."

Berman's full interview is available on Elite Consulting Partners.


Exitology Interviews David Blauzvern and Jordan Burg

The Silver Tsunami and Business Owners 

"Baby Boomers are aging out of business ownership and management. And the numbers are staggering. Half of American private businesses are owned by folks aged 55 or older. Those companies account for 32 million employees. So, now what? Either the majority of these companies have graceful transitions... or we have big problems, notes Burg."

"And many people just don't want to let go of their companies. They don't want to sell - especially if they're not serial entrepreneurs. Very often, business ownership is what defines these individuals. And so, the thought of stepping away at the age of 60 leaves them to ask, 'what am I going to do now?'"

The complete interview is available on Exitology.

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