EPI Greater Philadelphia Chapter Event | May 9, 2024

Business owners spend years, and in many cases decades, building their companies. These businesses are often not only their largest asset but a major component of their identity.  Legacy, for one’s family, one’s employees, and one’s community, is a major factor for many business owners. The decision to monetize a business can feel like “the end”, the tax bills can be eye popping, and the ongoing stewardship of the company is less certain as new ownership takes the reigns. 

An Employee Stock Ownership Plan (ESOP) can be an attractive liquidity strategy for the right company, business, and set of employees. 

The ESOP transaction can achieve significant tax benefits for selling shareholders, serve as an economic driver for employees, and allow a business owner to structure an “extended hand off” of their business.   

All that said, ESOPs aren’t right for every company, come with some level of complexity, and typically involve debt as a key component of the transaction. 

EPI Greater Philadelphia has assembled a panel of entrepreneurs who’ve successfully executed ESOP transactions for their companies. These business owners are willing to share their stories, what went right, the challenges that arose, and what they might do differently this time around. 

Learning Objectives:

• How does an entrepreneur begin examining their exit options? 
• What advisors are involved in the exit planning framework? What traits make a business an attractive candidate for an ESOP. 
• How does the transaction work? What are the tax benefits? 
• How are key executives and employees factored into the ESOP effort. 
• What is it like running an ESOP-owned company? 
• With hindsight, how would these successful entrepreneurs change their transactions?