An ESOP is one of the most effective and tax beneficial methods of facilitating an ownership and management transition for owners who have decided on pursuing an internal transition plan.
An ESOP will help stockholders, who have a keen interest in perpetuating their business with key employees or family members, to liquidate all or part of their holdings, without losing control of their company.
It can also be a highly effective tool to be used
in growing a firm organically, as a proven plan
for motivating employees. Or it can help facilitate
an acquisition strategy as it permits the funding
of acquisition related payments with pre-tax dollars.
What an ESOP will enable you to do:
· Sell all or a portion of your stock
and defer or eliminate capital gains tax;
· Create a market for your stock;
· Transfer ownership to family members or
key employees (Note: for design firms or firms operating in other industries with licensing requirements, there may be limitations depending on whether your State requires that all owners be licensed professionals within your industry);
· Borrow money for corporate expansion and
service the debt with pre-tax dollars;
· Enhance your estate planning strategies;
· Provide a retirement trust for your employees.
What Acuity can do for you:
· ESOP Feasibility Studies;
· Business Valuations and Appraisals;
· Design and Installation of ESOP Plans and
Trusts;
· Sourcing of Financing for Leveraged Loan
Transactions;
· Design, Structure and Financing of Mergers
& Acquisitions;
· Corporate Financial Consulting.
|
|
