ESOPs as Business Succession Tools: Promises and Challenges Explored!
An Employee Stock Ownership Plan (ESOP) is a type of qualified retirement plan that invests primarily in employer securities. Practitioners have begun to consider the potential for an ESOP to serve as an effective and efficient business succession tool.
Compared to selling the stock of a company to a private equity firm or strategic buyer, many agree that selling it to an ESOP provides better opportunities and tax advantages. Thus, business owners are now being encouraged to turn to ESOPs in their succession planning.
Join a panel of key thought leaders and practitioners assembled by The Knowledge Group as they go beyond the basics and present an in-depth analysis of ESOP strategies and their application as a business succession tool. Speakers will also provide the audience with significant succession planning tips using ESOPs, and the possible challenges business owners might meet along the way.
In a LIVE Webcast, the speakers will discuss:
- The Employee Stock Ownership Plan (ESOP) - Overview
- ESOPs as a Business Succession Tool
- Recent Developments
- Succession Planning Tips
- Promises and Challenges
Richard Harmon, CPA, Managing Director
CSG Partners LLC
- ESOP Design and Transaction Basics
- Advantages related to C Corp ESOPs vs S Corp ESOPs
- Differences between minority and majority ESOP structures and when they should be used
- Senior debt vs seller notes and the pros and cons of various financing strategies for ESOP transactions
Stanley E. Bulua, Esq., Partner
Robinson Brog Leinwand Greene Genovese & Gluck PC
- Special ESOP Rules and Legal Considerations
- Identify companies who could substantially reduce their tax liability by forming an ESOP
- Best practices in trustee selection and fiduciary aspects of ESOP transactions
- Common mistakes in ESOP sales and how to avoid them
Bret Tack, ASA, Managing Director
- When ESOP valuations are needed
- Overview of Valuation Approaches
- Levels of Value (when to apply discounts and premiums)
- Key assumptions/value drivers in ESOP valuations
- Other valuation considerations in ESOP transactions
- DOL hot button issues with regard to ESOP valuations
Who Should Attend:
- Employee Benefits, Trusts and Estates and M&A Attorneys
- Compensation and Benefits Consultants
- Valuation Professionals
- Owners, CEOs and CFOs of Closely Held Businesses
- Retirement Plan Financial Professionals
- Other Interested/Related Professionals
Bret Tack is a Managing Director at Cogent Valuation, and currently manages its Los Angeles Office. Providing business valuation and related financial advisory services full-time since 1985, he has managed over 2,000 valuation engagements involving companies ranging in size from small closely held companies to multinational, publicly traded companies with revenues in the tens of billions. Bret has over 30 years of experience working with ESOPs and has provided hundreds of ESOP valuation and financial opinions (including fairness and solvency opinions). ESOP transactions Bret has worked on include initial purchase transactions (leveraged and unleveraged), multi-investor transactions, annual update valuations, and ESOP sale/termination transactions. Bret also has substantial experience supporting his opinions upon audit by both the Department of Labor and the Internal Revenue Service.
Mr. Tack has valued companies in virtually all major industries and has particular expertise in the aerospace, restaurant, medical device, entertainment, printing, retail, wholesale, computer hardware and software, internet, information and market research, professional services, financial services, real estate development and syndication, apparel, food and beverage, consumer products and miscellaneous manufacturing industries.
Bret Tack is a Managing Director at Cogent Valuation, and currently manages its Los Angeles Office. Providing business valuation and …
Stan serves as chair of the Firm’s Tax, Trust and Estates and ESOP/ERISA Departments. Stan represents clients in the areas of income tax, estate planning, estate administration, ERISA and ESOPs. Stan has overall responsibility for the firm’s ESOP practice which includes representation of ESOP sponsors and ESOP trustees in transactional and compliance matters. He is a recognized expert in the ESOP area, has lectured to professional groups on this topic and has vast experience in the design and implementation of ESOPs to deal with a broad range of business succession issues.
Stan serves as chair of the Firm’s Tax, Trust and Estates and ESOP/ERISA Departments. Stan represents clients in the areas …
Since 2011, Richard has served as Managing Director with CSG Partners, completing numerous ESOP transactions for clients in diverse industries, including staffing, manufacturing, franchising, health care, real estate and engineering. His recent transactions have been awarded "Entertainment Deal of Year" and "Consumer Discretionary Deal of the Year" by the Global M&A Network and the M&A Advisor respectively. His transactions have also been named finalists for "Private Equity Deal of the Year," and "M&A Deal of the Year" by the M&A Advisor.
He began his career at PricewaterhouseCoopers where he was a founding member of its Emerging Business Services Group. Subsequent to PwC, he served as CFO for several middle-market companies and managed over 100 financial systems implementation projects. Leveraging his financial systems expertise, Richard launched TeamAlliance (TA), a leading provider of technology staffing services to the Fortune 500. After growing TA to a national organization with 30 offices, he sold the firm to Hall Kinion & Associates just prior to its IPO. Next he launched BackOffice Support Services, a financial staffing firm. BackOffice served as CFO for an ESOP-owned manufacturing firm, which led to Richard's position in CSG's ESOP practice group.
Since 2011, Richard has served as Managing Director with CSG Partners, completing numerous ESOP transactions for clients in diverse industries, …
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Method of Presentation:
On-demand Webcast; Group-Internet Based
Experience in employee benefits law/business succession planning
NY Category of CLE Credit:
Areas of Professional Practice
NASBA Field of Study:
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About Cogent Valuation
Cogent Valuation is a nationally recognized firm that has provided independent valuation and financial advisory opinions in thousands of situations since 1991. Cogent Valuation provides securities valuation and corporate advisory services to parties requiring an expert’s opinion on pricing, structure, fairness or solvency in connection with the following matters: mergers and acquisitions, buyouts, employee stock ownership plans, partnerships, gift and estate and other tax situations, recapitalizations, corporate finance, litigation support, intangible assets, and fraudulent transfers. Over the years, the firm has been retained by public and private corporations (large and small); financial institutions; fiduciaries; government agencies; boards of directors; attorneys; accountants and stockholders.
About Robinson Brog Leinwand Greene Genovese & Gluck PC
Founded in 1962 by A. Stanley Robinson and Avron I. Brog, Robinson Brog Leinwand Greene Genovese & Gluck, P.C. includes over 60 exceptional and dedicated professionals, who aim for extraordinary results for our clients. Every day, the lawyers of Robinson Brog solve problems, large and small, across an expansive platform of practice areas, including corporate and real estate transactions, public offerings, bankruptcy and business reorganization, commercial litigation, employment law, entertainment law, tax law, ERISA and wealth planning.
Robinson Brog combines the resources, abilities and sophistication of a large law firm with the personal attention and entrepreneurial spirit of a New York City boutique practice. Its attorneys are also particularly experienced and savvy in the New York market.
Robinson Brog’s clients include public and private corporations, real estate owners and developers, labor unions, contractors, hotels, restaurants, entertainers and private individuals. With its competitive rates, client-based ethos and personal accessibility, Robinson Brog has earned a loyal and long-standing client base.
About CSG Partners LLC
CSG Partners, LLC is a boutique investment bank specializing in ESOPs, mergers and acquisitions, and capital advisory services for middle-market companies. Our clients have spanned the full middle-market spectrum, with values ranging from $10 million to $1 billion. Founded in 2001, the firm has built a reputation of having the nation's preeminent ESOP investment banking practice. CSG Partners has been named the "Boutique Investment Banking Firm of the Year" by both The M&A Advisor and ACG New York. CSG Partners operates from offices in New York, San Francisco, and Washington DC.