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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

Hannibal Industries Features in LA Times for their Impressive & Strategic Growth

SG&F sends a hearty congratulations our client, Hannibal Industries, whose strategic and impressive recovery was featured in a recent LA Times article. Hannibal Industries, a large scale, California-based manufacturing company, became an employee owned company via ESOP in 2008.  Then the Recession hit, slashing Hannibal’s revenue in half, and causing a 50% reduction in its workforce.  Since then, the company successfully fought for survival, reinventing itself with efficiency, innovation and creative repurposing.  It is now on target to exceed its pre-2008 revenues ... Read more

Join Jim Steiker to learn the ABCs of ESOPs in our ESOP 101 Webinar

On November 20th, 2014, Jim Steiker will be hosting a webinar for CPAs that introduces the concepts of an ESOP, and the various tax-related issues that may arise. If you've ever wondered about ESOPs, this is the webinar to attend. Read more

Why do I need an ESOP TPA?

If you inherited an ESOP, and it has been in place for more than 5 years, brace yourself.  This is when you typically find out why you need one. Why do people need an ESOP Third Party Administrator (TPA)? While it may seem self- serving to ask a TPA, “Why do we need a TPA?”, it’s not much different than asking a dentist why you need a dentist.  You may have a drill and a pair of pliers, but that doesn’t mean that ... Read more

Questions about Liquidity Through An ESOP? Jim Steiker’s Got Answers

SC&H Presents: Liquidity and Succession Through an ESOP: What Business Owners Should Know Date: Wednesday, Oct 15, 2014 | 7AM - 10:00AM (EDT) Location:  The Ritz-Carlton Tyson’s Corner | 1700 Tysons Boulevard, McLean,VA 22102 Join panelists in an interactive three-panel session to learn about how an Employee Stock Ownership Plan (“ESOP”) can be a valuable liquidity and succession planning tool for private business owners. Jim Steiker will be featured on this panel answering questions to the following topics: The basics of an ESOP transaction and how an ESOP can be used ... Read more
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