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/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:

• Understand the process of exiting your firm and what options are available to monetizing shareholder interests.
• Identify the pros and cons of an ESOP.
• Take a deep dive into the ESOP benefits available to selling shareholder(s), employees, and the company.
• Fully appreciate how a feasibility study will show the selling shareholders the expected payout from a sale, the timing of the payout and the taxes involved.
• Understand how the feasibility study will contemplate the financial viability of the Company to buy out the shares of exiting shareholder(s).