Employee Stock Ownership Plans (ESOPs): Latest Trends and Developments in the 2017 Landscape
An employee stock ownership plan (ESOP) is a qualified defined-contribution retirement plan in which the company contributes its stock or acquires shares from existing shareholders, for the benefit of the company's employees. Under the Internal Revenue Code of 1986, stock sales to an ESOP may qualify the seller to the ESOP for a tax-favored treatment. In this LIVE Webcast, a seasoned panel of experienced ESOP consultants and professionals brought together by The Knowledge Group will provide the audience an in-depth overview of the fundamental framework of Employee Stock Ownership Plans. Speakers will highlight the recent trends and developments with regard to this remarkable topic. Speakers will also discuss cases involving ESOP companies.
Key topics include:
- Employee Stock Ownership Plans - Framework
- Opportunities and Risks
- Myths and Misconceptions Related to ESOPs
- Current Regulatory Environment of ESOPs
- Recent Trends and Developments
Marc S. Schechter, Partner
Butterfield Schechter LLP
- What type of company is an ideal ESOP candidate
- What benefits are available to the employer, employees, and selling shareholder of a stock sale to the ESOP
- What types of advisors are important to a successful ESOP implementation
Why time is right for ESOP consideration:
- Demographics (aging baby boomers)
- Valuations (post-financial crisis)
- Taxes (rates up, so deferral more attractive)
- Balance sought by owners of private companies
- Funding (financial markets available)
Keith A. Mericka, Managing Director - Wealth Management, Private Wealth Advisor, Senior Portfolio Manager
The ESOP Group | UBS Financial Services Inc.
- Pre-sale planning: Structural asset allocation and estate tax optimization
- Consider tax deferral alternatives and requirements before the sale
- Deferring tax by electing Section 1042: Pluses and minuses
David Jasmund, Shareholder, Investment Banking
PCE Investment Bankers, Inc.
- Financing the sale to an ESOP - Options available in today’s capital markets including senior financing, alternative lenders and seller financing (it doesn’t have to be one or the other). This section will also include a discussion on warrants and their use in seller financing today.
- Structuring the sale to an ESOP – Partial vs 100% sale and the control aspects of each– C-Corp vs S-Corp sale (possibly touched on in the 101 section)
- Dual track sale process – Pros and Cons of evaluating the sale to a 3rd party parallel to considering a sale to an ESOP
Daniel M. Zugell, CLU, ChFC, LUTCF, Director/Senior Vice President
- Education – Structuring, tax advantages, valuation, financing, control
- Preliminary Analysis – Review of financials, value estimate, probable tax savings, likely financing
- Feasibility Study – Corporate cash flow, plan and transaction design, structuring, financing
- Implementation – ERISA counsel, Trustee, Valuation, Banks. TPA
- Post-Transaction – Employee communications, Repurchase liability study, 5500 filing
Who Should Attend:
- Benefits Managers
- Compensation and Benefits Consultants
- Employee Benefits Attorneys
- Retirement Plan Financial Professionals
- Retirement Plan Practicing Lawyers
Marc Schechter specializes in the areas of employee benefits, ERISA, and business matters. He has extensive experience designing, drafting, and implementing all types of employee benefit programs, with emphasis on ESOP transactions. In addition to handling a wide range of business transactional matters, he has significant experience with ERISA litigation matters and representing plan sponsors in audits with the IRS, FTB, and DOL relating to qualified and nonqualified employee benefit plans. He is an active speaker on employee benefit law topics for a wide variety of organizations. His client base ranges from sole practitioner lawyers and physicians to publicly traded corporations to professional musicians and athletes.
Marc Schechter specializes in the areas of employee benefits, ERISA, and business matters. He has extensive experience designing, drafting, and …
Daniel M. Zugell, CLU, ChFC, LUTCF is Director/Senior Vice President of BTA, Inc. with a wealth of hands-on and management experience spanning many financial service disciplines. Dan’s experience includes the formation of MetLife’s ESOP program and as a Director of MetLife’s Institutional Specialized Benefit Resources division. Since 1998, Dan has emerged as a national presence on ESOP matters as a frequently published author and featured speaker. Dan holds a B.A from Grove City College, has earned several advanced financial designations and is a member of The ESOP Association, National Center for Employee Ownership, The Estate Planning Council and the Society of Financial Service Professionals. Ambassador - Pennsylvania Center for Employee Ownership.
Daniel M. Zugell, CLU, ChFC, LUTCF is Director/Senior Vice President of BTA, Inc. with a wealth of hands-on and management experience …
Keith and his team have advised hundreds of private and family business owners through a process designed to optimize pre- and post-transaction outcomes, most often involving a tax-advantaged ESOP sale. Keith joined UBS in 1987 after starting his career with Morgan Stanley in 1983. Soon after joining UBS, Keith co-founded UBS’s national Employee Stock Ownership Plan (ESOP) practice. For many years he has been an active and frequent speaker on a variety of ESOP-related subjects and is universally regarded as a thought leader and the foremost expert of ESOP section 1042 tax-deferred sales and ESOP cash and investment management.
Keith and his team have advised hundreds of private and family business owners through a process designed to optimize pre- …
David Jasmund is a founding partner of PCE, with more than 20 years of experience in mergers & acquisitions (M&A) and Employee Stock Ownership Plans (ESOPs). David offers business owners a personalized approach in identifying, implementing and executing M&A and ESOP transactions suitably structured for the future well-being and sustainability of their business.
As a highly successful entrepreneur, business owner and advisor, David brings a unique business perspective to the table. Prior to his work at PCE, he grew a small insurance start-up of three people into a powerhouse that employed more than 1,200 people and generated annualized revenues of over $700 million. David is an active member of the NCEO, ESOP Association and holds FINRA Series 7, 24 and 79 securities licenses.
David Jasmund is a founding partner of PCE, with more than 20 years of experience in mergers & acquisitions (M&A) …
Print and review course materials
Method of Presentation:
Experience in employee benefits law
NASBA Field of Study:
Business Management & Organization - Non-Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About Butterfield Schechter LLP
Butterfield Schechter LLP is San Diego County's largest firm focusing its law practice primarily on employee benefit plan matters. Butterfield Schechter LLP was founded in 1998 by Robert K. Butterfield and Marc S. Schechter. The attorneys at Butterfield Schechter LLP are dedicated to providing top-quality legal service tailored to clients' needs. Our commitment to excellent service and our combined experience fosters positive and efficient solutions for clients. The firm's persistent effort to prevent legal problems from occurring encourages the development of long-term client relationships. Our broad-based clientele includes corporations, individuals, partnerships, limited liability companies, joint ventures, qualified retirement plans, nonprofit organizations, and government agencies.
About BTA, Inc.
Business Transition Advisors specializes in ESOP consultation and analysis including feasibility studies, implementation, financing, employee communications and more. Our holistic approach reaches beyond basic installation of an ESOP and takes into account the total needs and consequences for the seller, company, management, and employees. Our collective experience with hundreds of clients offers a unique perspective to address business owner liquidity using the most advanced and creative techniques available, while incorporating the brightest ESOP professionals in their respective fields.
About The ESOP Group | UBS Financial Services Inc.
While many of our clients initially come to us for our ESOP insight and execution, we view that transaction as part of the larger scope of your wealth management strategy. Our experienced team is well-versed in addressing the complex wealth advisory and planning challenges affluent investors face. With deep expertise and resources for addressing complex wealth challenges, UBS Private Wealth Management and The ESOP Group offer perspective and insights into what affluent clients need and expect—industry-leading innovation, global solutions and an exceptional level of service and execution.
About PCE Investment Bankers, Inc.
Our experienced team provides middle-market business owners with award-winning investment banking, valuation, advisory and ESOP services. Since 1997, PCE has offered middle market clients the sophistication of a full-service firm with the individualized attention of a boutique firm.
Whether you’re buying, expanding, merging, or selling a company, PCE will identify the best capital strategies and solutions for your personal and corporate goals. PCE has installed and designed more than $2 billion in ESOP transactions for privately held companies around the country.