Employee Stock Ownership Plan (ESOP)
The Advantages of Employee Ownership
It’s often said that employees are a business’s most important asset. If you are currently managing an existing ESOP or are considering selling some or all of your business to your employees as part of an exit strategy, you are already aware of the many tax and cultural advantages of employee ownership.
The unique opportunities and challenges presented in an ESOP structure oftentimes are not encountered under other ownership arrangements or sales to third parties. Wherever you are in your ESOP journey, it’s important to partner with business advisors who have the in-depth knowledge, experience, and resources to help manage an ESOP’s many moving parts, protect assets, and provide innovative ideas and guidance to navigate this complex plan structure.
We Understand the Ownership Culture
Implementing our own ESOP in 2001 has better prepared us to serve as business, tax, accounting, and valuation advisors to employee-owned companies in a variety of industries. KSM understands first-hand the distinct opportunities an ESOP provides to owners and employees and knows that the key to staying ahead is having a trusted advisor on your side.
Need Support or Guidance?
You have questions, we can help. Our team of dedicated ESOP professionals stay up to date on issues and trends in the ESOP community. We combine the depth of ESOP financial advisory experience with the breadth that comes from KSM’s position as a leader in the areas of audit, tax, and consulting services.
Our experience can help educate and communicate to employees, guide board members, and suggest options for enhancing your ownership culture. We can also consult on executive benefits structuring and modeling, application of ESOP accounting methods, and succession planning and executive compensation studies. We can even serve on your board of directors to continue adding ongoing value.
Our ESOP services also include:
- Annual valuation updates
- Entity and transaction structuring
- ESOP feasibility studies
- ESOP plan audits
- Financial statement audit, review, and compilations
- M&A due diligence
- Tax structuring and planning/preparation
- Transaction opinions
Additionally, our close and long-term relationships with trustees, attorneys, third-party administrators, and financial institutions committed to ESOPs mean we can build a top-notch team to provide you with the best resources and most knowledgeable professional advice available.
As advisors practicing at a national level, KSM’s ESOP leaders are actively involved with many state chapters of The ESOP Association, the National Center for Employee Ownership (NCEO), and the Indiana Center for Employee Ownership (INCEO). Our professionals are frequent speakers at industry events and webinars and thought leaders contributing to a variety of mediums on ESOP-related topics.
Ready to Take the Next Step?
If you are not already part of an employee-ownership culture and are wondering if an ESOP would work for your company, now is a good time to start an ESOP feasibility study. It goes beyond surface-level, subjective factors and provides facts and data that will help you make a decision about selling your business. In other words, an ESOP feasibility study gives you and other stakeholders the information you need to know if an ESOP is right for your business. Even if you decide that an ESOP is not your best choice, the feasibility study will provide much of the information necessary to help you evaluate other opportunities. Learn more about how KSM can help you fulfill your vision of the future.
Explore the employee-ownership option through the following whitepapers:
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