ESOP Consulting & Formation

ESOP Consulting & Formation: A Powerful Strategy for Business Succession

An Employee Stock Ownership Plan (ESOP) is a unique and powerful tool that allows business owners to sell their company to its employees. It provides a flexible and highly tax-advantaged path for succession, enabling owners to achieve liquidity while preserving the company's legacy, culture, and rewarding the people who helped build it. For many privately-owned businesses, an ESOP isn't just a transaction; it's a transformational event that secures the future for all stakeholders.

 Why Consider an ESOP for Your Business?

An ESOP offers compelling advantages over a traditional third-party sale. It provides a unique
opportunity to create a customized exit strategy that aligns with your specific financial and personal goals

Significant Tax Advantages

An ESOP structure can provide substantial capital gains tax deferrals for the selling shareholder and allows the company to make tax-deductible contributions to the plan to repay the acquisition debt.

Create Your Own Buyer

Eliminate the lengthy, uncertain, and often disruptive process of finding a suitable third-party buyer. With an ESOP, you create a ready and willing buyer in the form of an ESOP Trust.

Preserve Your Company's Legacy

Ensure the business continues to operate with its existing name, culture, and management team in place. An ESOP provides stability and continuity for your employees, customers, and community.

 

Reward & Motivate Your Employees

Align the interests of your employees with the financial success of the company. Turning employees into owners can significantly boost morale, productivity, and retention.

Flexible & Gradual Exit

As the owner, you maintain control over the timing and structure of the sale. You can sell anywhere from 30% to 100% of your shares, allowing for a gradual transition out of the business if desired.

 

Your Expert Quarterback for the Entire ESOP Process

The process of forming an ESOP is complex, involving legal, valuation, fiduciary, and financing experts. At Wise Consulting Group, we act as your dedicated quarterback for your most important financial initiatives, managing every step of the transaction from start to finish. We begin with a confidential analysis to determine if an ESOP is the right fit for your company and your personal objectives. From there, we lead the entire engagement:

Assembling the Expert Team

We leverage our extensive network to quarterback a handpicked team of talented professionals, including specialized ESOP attorneys, trustees, valuation experts, and lenders.

Structuring the Transaction

We work with you and the expert team to structure a deal that meets your financial goals while adhering to all regulatory and fiduciary requirements

Securing Capital

Leveraging decades of senior-level banking experience, we source the optimal financing package from bank and non-bank lenders to fund the transaction.

Project Management to Closing

We manage all parties and drive the process forward efficiently, always maintaining the owners' priorities.

A Trusted Partner for Critical Decisions

  • Lucas C, CEO

    For your guidance, experience, and 'make it happen' attitude. Without you, I couldn't have pulled this off. Thank you.

    Lucas Cole, CEO, Epipheo |
    On the successful sale of his company to its employees via an ESOP

    ⭐⭐⭐⭐⭐

Ready to Navigate Your Next Move?

Whether you are contemplating a once-in-a-lifetime transaction or seeking a long-term strategic partner, the first step is a confidential conversation.