Liquidity Without Sacrificing Legacy

When business owners want to monetize their equity, but demand continuity, they consider ESOPs.

Looking for an M&A Alternative?

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You probably have middle market clients who would benefit from a liquidity event but wouldn’t dream of selling their businesses. Whether they’re concerned about damaging their legacy, abandoning trusted employees, or giving up on a potential multi-generational asset, their fears are valid and, at times, stifling. Even if they ultimately settle for a traditional third-party or private equity transaction, the capital gains tax burden can often be painful.

ESOP – A Flexible Liquidity Solution

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Employee stock ownership plans offer business owners a tax-efficient opportunity to unlock the net worth tied-up in their companies, without sacrificing the legacies they've built. 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. Selling shareholders and their companies can reap tax benefits, maintain the flexibility to make future M&A transactions, and gain a number of additional benefits.

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Tax-Efficient Diversification

By reinvesting their sale proceeds in a Qualified Replacement Property, business owners can defer or eliminate capital gains taxes.

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Upside

Owners may continue to hold stock and maintain a meaningful role in the business.

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Estate Planning

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 wealth advisors and relationship managers trust CSG Partners to analyze, structure, finance, and close complex ESOP transactions for their clients' companies. Our focus on education, and our commitment to honoring the advisor-client relationship, has led to hundreds of completed transactions and numerous 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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