COR2407. ESOPs Are a Great Alternative Buyer: Come and Learn the Basics of ESOPs and Their Feasibility to Your Company

Baby boomers are increasingly searching for a tax-efficient way to exit or monetize their equity in construction companies at an attractive transaction amount. This presentation shows how an Employee Stock Ownership Plan (ESOP) can provide liquidity to selling shareholders in a tax-advantaged environment, all while providing an attractive retention tool for employees and creating a lasting legacy for selling shareholders. In addition, we will discuss the need for a comprehensive examination of the company’s financial and organizational readiness, as well as an assessment of the potential impact on all stakeholders involved, prior to making the decision to sell a stake of your company to an ESOP. Finally, we will lay out the “roadmap” to progress from the feasibility stage to closing an ESOP transaction.

Learning Objectives:

• Recall the process of exiting your firm and what options are available to monetize shareholder interests.
• Identify the pros and cons of an Employee Stock Ownership Plan (ESOP).
• Recognize the ESOP benefits available to selling shareholder(s), employees, and the company.
• Distinguish how a feasibility study will show the selling shareholders the expected payout from a sale, the timing of the payout, and the taxes involved.
• Recognize how the feasibility study will identify the financial viability of the company to buy out the shares of exiting shareholder(s).