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Mark Your Calendars: Upcoming Learning Opportunities

News & Events Mark Your Calendars: Upcoming Learning Opportunities Author: Beth Chambers   Speakers from SES Advisors and our sister law firm, Steiker, Greenapple & Fusco, will be at a number of upcoming events. For more information, follow the links below or contact us. November 12–13, 2015 — Several of our advisors will be presenting at The ESOP Association’s 2015 ESOP Conference and Trade Show in Las Vegas: Jim Steiker will discuss “Duties and Responsibilities of Trustees.” Tina Fisher will discuss “Diversification and Current Trends, Including Mandatory Diversification.” Steve ... Read more

What are the advantages of an ESOP over other succession planning solutions?

I’m often asked why a business owner would choose an ESOP over other succession planning alternatives. Considering most business owners have spent the greater part of their life building their company, it’s a once in a lifetime decision that requires careful consideration of the available alternatives.  After all, you will only exit your business once. The following is a brief discussion of the advantages of an ESOP versus the two most common succession planning alternatives: Independent Third Party Transfer (selling the company to a ... Read more

AACE 2015 Winners have been announced

SES Advisors would like to congratulate all of the ESOPs who were nominated for an AACE 2015 award. We would especially like to send our warmest congratulations to our client Fabric Services who were runner up in the category "Special Events & Promotions – One Outstanding Event, 250 or Fewer Employees" From The ESOP Association Website: The Annual Awards for Communications Excellence (AACE) are sponsored by The ESOP Association to recognize the outstanding communications programs of its members. AACE winners are chosen by a ... Read more

The ESOP Advantage for S-Corporations

“WASHINGTON, D.C. (March 31, 2015) – New data compiled by EY's Quantitative Economics and Statistics (QUEST) practice, shows that private employee stock ownership retirement plans (S corporation ESOPs) outperformed the S&P 500 Total Returns Index in terms of total return per participant by an impressively large margin (62%), net assets increased over 300%, and distributions to participants totaled nearly $30 billion from 2002 to 2012.” The interesting question is: why? One might expect a natural advantage from the tax benefits of the structure, ... Read more

Why do companies and shareholders choose ESOPs as a liquidity and succession strategy?

We like to think that shareholder/entrepreneurs are really investors in their companies. While that is true by itself, it isn’t the whole story. When I talk to a shareholder/entrepreneur, I’m not only talking to an investor. I’m usually talking also to a key executive, board member (sometimes the sole board member), who has important relationships with his management team and employees, including family members in the business, as well as the community and the industry. The liquidity/succession decision rarely gets made purely as ... Read more

Five Reasons Why You Should Use an ESOP

Yesterday, we posted five reasons why you shouldn’t use an ESOP. Today, we visit five sound reasons to consider an ESOP for you, your company, your shareholders and your employees. 1. ESOPs are a tax-favored liquidity strategy that delivers fair value for shareholders. Entrepreneurs often have several liquidity strategies available to create shareholder liquidity. ESOPs generally acquire company stock for fair market value, generally about at the same level as a private equity buyer. Moreover, a shareholder selling stock to an ESOP sponsored ... Read more

Five Reasons Why You Should Not Do an ESOP

As an ESOP Advisor,  it is easy to pitch the virtues of Employee Stock Ownership Plans for companies considering liquidity and succession alternatives. There are, alas, often sound reasons not to do an ESOP. Here are my top five: 1. It’s complicated. ESOPs have complex operating rules and require significant oversight.   Although outside advisors and ESOP Third Party Administration (TPA)  firms can manage the details of the plan,  the ESOP company needs an internal agent to champion the program and serve as an onsite resource. ... Read more

Learn the basics of ESOPs: Join us for an ESOP 101 webinar

"Every company who is looking at the succession of ownership should be at least considering and understanding the advantages and disadvantages of what an ESOP could offer to them." Wednesday, March 4, 2015.  12:00PM (EST) Join SG&F for a webinar that introduces the concepts of an ESOP, and the various tax-related issues. ESOPs (Employee stock ownership plans) are highly-tax-favored way for employees to share ownership in their company through a trust fund. Find out how an ESOP could be an advantage to your company with ... Read more

Find us in New Orleans at the Two-Day Professional ESOP Forum

    The ESOP Association is holding a two-day open discussion forum for Professional Members of The ESOP Association. Led by the Chairs of the highly respected Association Advisory Committees on Valuation, Finance, Legislative and Regulatory Affairs, Administration, Ownership Culture and Fiduciary Issues, this two day program will lay bare the tough issues facing ESOP professionals, and present the pros and cons of different views. The goal is not only to air different view-points, but to move towards consensus as to “best practices” by the ... Read more

SES Advisors to Sponsor & Speak at NCEO Scottsdale

SES Advisors is Proud to Sponsor NCEO's Event in Scottsdale, Arizona: Is an ESOP Right for You? James Steiker will speak on Tuesday, February 10th at 1:30PM outlining ESOP Transaction Structures. Presentation Details: DATE AND TIME: Tuesday, February 10th, 2015 | 1:30 PM - 2:15 PM PST LOCATION:  Chaparral Suites Scottsdale | 5001 North Scottsdale Road | Scottsdale, AZ 85250 The Meeting DATE AND TIMES Tuesday and Wednesday, February 10-11, 2015 Tuesday | Starting at 1PM, round-tables and speakers throughout the day and adjourning at 5:00PM with a wine and cheese service. Jim Steiker speaks ... Read more
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