News & ESOP Resources

Congress and the Federal Reserve have already pumped trillions of dollars into the economy to limit the Coronavirus’s economic damage. Additional stimulus is likely. However, once the immediate crisis has passed, elected officials will have to face the music. Their response could significantly alter how private businesses are valued, and how the owners of those companies asses their M&A ...

With so many ESOP-owned companies in the food and hospitality industries, we wanted to highlight a federal tax provision that’s taken-on out-sized importance in 2020. 

More than half of all proposed M&A transactions either fail to close or are consummated on terms that are substantially different than the original LOI.

Since passage of the CARES and SECURE Acts, we’ve seen several deadline and policy shifts in relation to employee stock ownership plans. On April 9, 2020, the IRS further redefined this year’s ESOP management calendar.

Moments of adversity offer business owners an opportunity to step back and evaluate their operations and strategies.

The Coronavirus epidemic has brought an abrupt and unexpected change to the operating environment.  Even if your company wasn’t impacted financially, the human toll on your staff, customers, and partners has likely been a management challenge in and of itself. 

Since passage of the CARES Act, our team has been reviewing the Paycheck Protection Program’s (PPP) implications for companies with employee stock ownership plans (ESOPs). The PPP should provide significant support to middle market businesses in the form of low interest loans (1%) that are potentially forgivable.

One aspect of the CARES Act of 2020 that's especially relevant to ESOP companies is the relaxation of the SBA's Emergency Injury Disaster Loan (EIDL) program requirements.

During the 2007-08 financial crisis, I was a financial advisor to families and business owners. As you’d expect, the period was marked by uncertainty as established financial institutions were failing or on the brink of disaster.

M&A, dividend recapitalization, and employee stock ownership plan (ESOP) transactions currently in process will likely be impacted by the highly volatile market conditions created by the COVID-19 outbreak.