What is an Employee Stock Ownership Plan (ESOP)?
|
|
- Tyrone Jackson
- 8 years ago
- Views:
Transcription
1 What is an Employee Stock Ownership Plan (ESOP)? An ESOP is a Tax Qualified, Defined Contribution Plan, governed by the Internal Revenue Service and Department of Labor that was put into law under the Employee Retirement Income Security Act (ERISA) of More specific an Employee Stock Ownership Plan (ESOP) is: A plan that offers shareholder liquidity. A plan that offers succession planning. A plan that offers financial and equity incentives to employees using tax-deductible dollars from the Company. A plan that enables a Company to reduce or eliminate corporate taxes. A plan designed by law to invest primarily in the stock of the sponsoring company. A plan that is qualified by the IRS, which means the company and selling shareholder receive tax benefits not available to other NON ESOP companies or selling shareholders. A plan that is able to increase working cash flow or restructure debt (dilution). Why an ESOP? An ESOP allows shareholders to monetize their equity as part of a succession plan in a tax efficient manner no other retirement plan can deduct the principal portion of a stock buyout. While monetizing their equity, owners create a perpetual Company where continuing and new employees will be able to share in the equity growth of the Company. An ESOP is one tool but other shareholder exit strategies include: Sale to Third Party Sale to Management Roll up / Private Equity Initial Public Offering Wind-Up Business and Liquidate No plan - Die with a lot of life insurance Are any of these exit strategies available to you? If not, then an ESOP may be the solution.
2 Company Benefits: Income tax savings of 40% to 100% Able to increase cash flows (dilution) Corporation can succeed through multiple generations Able to use pre-tax dollars to repay debt associated with ESOP S Corporation stock owned by an ESOP is not subject to federal tax Tax-deductible C Corporation dividends Shareholder Benefits: Able to monetize equity and create liquidity for ownership Value received for stock is at fair market value (must be independent value) Able to retain control of Company As a C Corp, able to rollover sale proceeds, tax deferred (1042) Advantages for Employees: Employees participate in ESOP as a retirement plan, sharing in equity growth of the Company Accounts are tax free until a distributable event Incentivizes/Retains employees beyond a paycheck ESOP contributions are made solely by the Company ESOP contributions are typically larger than other retirement plan contributions
3 Typical ESOP set ups: Cash fund for (x) years to build up down payment or war chest for future sale Corporation obtains bank loan to purchase stock from owner(s) Owner carries note Any combination of above Myths & Misconceptions: Owner must disclose all financial information to employees = FALSE Owner will lose control of Company if ESOP owns more than 50% = FALSE Owner must sell stock immediately upon plan creation = FALSE ESOPs are only for large companies = FALSE ESOP Facts: Approximately 6,000 ESOPs in U.S. 4,500 majority owned by the ESOP 3,000 are 100% owned by the ESOP An overwhelming majority of ESOP companies have other retirement and/or savings plans, such as defined benefit pension plans or 401(k) plans, to supplement their ESOP Found in all industries, not limited to a particular type of business 71% of ESOP s are in companies with fewer than 250 employees At least 75% of ESOP s are or were leveraged, i.e. they used borrowed funds to acquire stock bought by the ESOP from a bank or owner carried paper ESOPs can be as small as 25 employees, no limit as to how large
4 Typical Installation of an ESOP 1. Education and information A. Preliminary Meeting(s): 1. Review Company/Board and Shareholder objectives 2. Discuss valuation procedures in ESOP context 3. Discuss ESOP culture and sale scenarios a. corporate governance b. ESOP trustee(s) 4. Go over ESOP rules and long term planning a. contributions, forfeitures, distributions, leveraging b. on-going record keeping and valuation c. distribution obligations in future d. impact of employees on value B. Secondary Meeting(s) as necessary 1. Review first meeting 2. Meet with other Company advisors to address questions/concerns 2. Installation A. Independent Appraisal of Company for Transaction B. Take Plan Specs / Draft Plan Document / Draft Transaction Documents C. Review Plan / Transaction Documents, Sign, Submit to IRS D. Communicate to Employees E. Typically takes 3-6 months to install the ESOP F. Installation fees range from $30,000 - $100,000+ depending on complexity **Steps may be completed in different order**
5 Since 1996 Trivium Analytics, Inc. has been involved with ESOP s and working with business owners / advisors to understand and analyze their succession objectives. The approach is simple; educate the shareholders & board of directors so that they can make an informed decision on whether or not an ESOP is right for them. With Trivium Analytics educating shareholders and board members, an ESOP can be properly designed to best meet their objectives. Trivium Analytics has worked with and continues to work with many privately held businesses throughout the United States. We are quite confident our clients will recommend our work and are happy to provide customer references. Thank you for considering Trivium Analytics for your ESOP installation needs. Contact: Todd Henry President Trivium Analytics, Inc st Street, Suite 255 Pleasanton, CA Phone: Fax: thenry@triviumanalytics.com
Contents. Define ESOP 3. ESOP Advantages 4. Creating an ESOP 5. ESOP Tax Advantages 6. ESOP Laws 7. ESOP Rollover (Section 1042) 8.
ESOPs Contents Define ESOP 3 ESOP Advantages 4 Creating an ESOP 5 ESOP Tax Advantages 6 ESOP Laws 7 ESOP Rollover (Section 1042) 8 ESOP Valuation 9 ESOP Distribution 10 Repurchase Obligation 11 Disadvantages
More informationThe Potential Advantages of an Employee Stock Ownership Plan (ESOP)
The Potential Advantages of an Employee Stock Ownership Plan () Presented by: Ronald J. Gilbert, President Services, Inc., Scottsville, Virginia 4:30 p.m. - 6:00 p.m., Sunday, October 16, 2005 Ft. Lauderdale,
More informationGETTING THE MOST OUT OF YOUR ESOP
GETTING THE MOST OUT OF YOUR ESOP Michael G. Keeley Hunton & Williams LLP 1445 Ross Avenue Suite 3700 Dallas, Texas 75202 (214) 468-3345 mkeeley@hunton.com Traditional Sources of Capital for Community
More informationEmployee Stock Ownership Plans for Banks and Bank Holding Companies The Tax-Exempt Stock Market
Employee Stock Ownership Plans for Banks and Bank Holding Companies The Tax-Exempt Stock Market Presenters: W. William Gust, J.D., LLM President of Corporate Capital Resources, LLC Michael A. Coffey Managing
More informationESOP OPPORTUNITIES WHITE PAPER
ESOP OPPORTUNITIES WHITE PAPER This White Paper contains an overview of the Exit Planning Process. We have White Papers describing, in detail, many of its elements. Please contact the advisor who gave
More informationAn Instrument of Corporate Finance
An Instrument of Corporate Finance Year-End Seminar Doing Business in Central Pennsylvania and Beyond November 12, 2014 Edward C. Renenger ecr@stevenslee.com A STEVENS & LEE/GRIFFIN COMPANY Introduction
More informationBusiness Succession Planning With ESOPs
acumen insight Business Succession Planning With ESOPs Presented by Alan Taylor, CPA Partner ideas attention reach expertise depth agility talent Disclaimer Information contained herein is of a general
More informationESOP Business Planning Group
ESOP SOLUTIONS Services to Companies Provide initial feasibility analysis and transaction planning Recommend ESOP professional team members Negotiate and implement ESOP financing Coordinate ESOP implementation
More informationAn ESOP is a very flexible instrument that uses tax-deductible or tax-free dollars to achieve a variety of corporate objectives, as outlined below:
Summary of ESOP Uses An ESOP is a very flexible instrument that uses tax-deductible or tax-free dollars to achieve a variety of corporate objectives, as outlined below: 1. Provide a market (at fair-market
More informationMoss Adams Introduction to ESOPs
Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as
More informationInformation and Frequently Asked Questions for Employee Stock Ownership Plan (ESOP) Participants
Information and Frequently Asked Questions for Employee Stock Ownership Plan (ESOP) Participants An Opportunity to Take Part in Your Company's Success If you ve been invited to participate in your company
More informationEmployee Stock Ownership Plan (ESOP)
Employee Stock Ownership Plan (ESOP) The basics: The ESOP is essentially a stock bonus plan in which employer stock may be used for contributions. How It Works Employer contributes company stock or cash
More informationUsing ESOPS to Fund Owner Buyouts and Provide Business Capital
Using ESOPS to Fund Owner Buyouts and Provide Business Capital Harry I. Atlas John A. Wilhelm October 2012 1 What Is An ESOP An ESOP is a tax-qualified employee retirement plan (similar to a 401(k) plan).
More informationThe ESOP Solution for Private Companies
The ESOP Solution for Private Companies An e-seminar presented by the Beyster Institute at the Rady School of Management University of California, San Diego Copyright 2006 Regents of the University of
More informationEMPLOYEE STOCK OWNERSHIP PLANS (ESOPs): A BUSINESS SUCCESSION PLANNING TOOL WORTH CONSIDERING
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPs): A BUSINESS SUCCESSION PLANNING TOOL WORTH CONSIDERING By: Chuck Coyne, ASA Empire Valuation Consultants, LLC Tabitha Croscut, Esq. Steiker, Greenapple & Crosut,
More informationESOPs in Business Succession and Estate Planning
2009 NCEO/Beyster Institute Employee Ownership Conference ESOPs in Business Succession and Estate Planning Bob Gross Senior Managing Director Oakbrook Terrace, Illinois 630-443-9933 Marc Schechter Attorney
More informationBusiness Valuation and Exit Planning. Aaron J. Pryor, CFA, ASA
Business Valuation and Exit Planning Aaron J. Pryor, CFA, ASA Phases of a Business Valuation Assignment Define the valuation assignment What exactly is the subject of the valuation What is the purpose
More informationEMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) MARC S. SCHECHTER ROBERT K. BUTTERFIELD ATTORNEYS AT LAW BUTTERFIELD SCHECHTER LLP ATTORNEYS & COUNSELORS
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) MARC S. SCHECHTER ROBERT K. BUTTERFIELD ATTORNEYS AT LAW BUTTERFIELD SCHECHTER LLP ATTORNEYS & COUNSELORS Butterfield Schechter LLP was founded in 1998 by Robert
More informationConverting Business Equity Into Diversified Assets
Converting Business Equity Into Diversified Assets Joe Wisniewski President & CEO (415) 898-5888 Paul Wiest COO & Managing Director-Southwest (480) 747-5035 What if there were a way for the owner of a
More informationHow To Sell A Company To An Employee Stock Ownership Plan
The Anatomy of a Successful ESOP Transaction Acquiring 100% of the stock of The Ace Company, Inc. Presented by: Michael Harden Managing Director Sid Sullivan COO & CFO Michael Holzman Partner Neil Brozen
More informationThe ESOP Business Model. February 2013
The ESOP Business Model February 2013 Topics to be Covered + Purpose and Regulatory Environment + Major Benefits of ESOPs + ESOP Transactions + Business Valuation Standards + ESOP Accounting Rules + ESOP
More informationEMPLOYEE STOCK OWNERSHIP PLANS
EMPLOYEE STOCK OWNERSHIP PLANS AN EXTRAORDINARY FINANCIAL AND EMPLOYEE BENEFIT TOOL FOR THE CLOSELY-HELD COMPANY Copyright 2015 Olson Mills Law Firm, LLC All Rights Reserved PART TOPIC PAGE INTRODUCTION...1
More informationFinancial Participation for a New Social Europe
Financial Participation for a New Social Europe Focus: Business Succession in SMEs Developing a European ESOP Model 23. May 2008 VII. European Meeting of Employee Share Ownership, Brussels, Bibliotheke
More informationHow It Works. Additional Considerations. The basics: The ESOP is essentially a stock bonus plan in which employer stock may be used for contributions.
The basics: The ESOP is essentially a stock bonus plan in which employer stock may be used for contributions. How It Works Employer contributes company stock or cash to the plan. Employer contributions
More informationEmployee Stock Ownership Plans ESOPs 101
Employee Stock Ownership Plans ESOPs 101 BTA INC 2013 Complete Turn Key Services Full Service ESOP Implementation Services Preliminary Analysis Feasibility Studies Valuation Consulting Plan and Transaction
More informationFinancial Planning. One afternoon, your client, Fred. Using ESOPs for Business and Retirement Planning
VOL. CLXXV NO. 12 INDEX 1176 MARCH 22, 2004 ESTABLISHED 1878 Financial Planning Using ESOPs for Business and Retirement Planning A powerful and flexible tool that helps a retiring shareholder sell his
More informationS CORPORATION ESOPS CREATE INVESTMENT, ACQUISITION, AND EXIT STRATEGY OPPORTUNITIES
ESOP Financial Advisory 3 S CORPORATION ESOPS CREATE INVESTMENT, ACQUISITION, AND EXIT STRATEGY OPPORTUNITIES FOR PRIVATE EQUITY GROUPS William W. Merten, Esq. M&A advisers are becoming increasingly familiar
More informationWhat is an ESOP? ESOPs are defined contribution pension plans that invest primarily in the stock of the plan sponsor
Employee Stock Ownership Plans May 2013 http://aicpa.org/ebpaqc ebpaqc@aicpa.org Topix Primer Series The AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) has developed this primer to provide Center
More informationESOPs can provide liquidity for business owners and trusts that hold closely held businesses. Non-tax advantages of selling to an ESOP include:
Know your value Benefits of ESOPs An ESOP (Employee Stock Ownership Plan) is an employee benefit plan that makes the employees of a company beneficial owners of stock in that company. The tax code has
More informationRETIREMENT PLAN SERVICES
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) WHAT IS AN ESOP An ESOP is a form of profit-sharing plan designed to invest primarily in employer stock. ESOPs often are used as a means of transferring ownership
More informationemployee benefits update
employee benefits update february/march 2007 When your plan year isn t the calendar year ESOP basics Set-up, distribution and diversification rules It doesn t have to be confusing Distributions of Roth
More informationWhat is an Employee Stock Ownership Plan?
ESOP Administration What is an Employee Stock Ownership Plan? An Employee Stock Ownership Plan (ESOP), provides employees with access to capital ownership by making them stock owners. The employee stock
More informationCONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP
AUTHOR John A. Wilhelm, Partner Venable, LLP 8010 Towers Crescent Drive Suite 300 Vienna, VA 22182 PH: 703.760.1917 FAX: 703.821.8949 JAWilhelm@Venable.com CONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP
More informationEMPLOYEE STOCK OWNERSHIP PLANS
EMPLOYEE STOCK OWNERSHIP PLANS AN EXTRAORDINARY FINANCIAL AND EMPLOYEE BENEFIT TOOL FOR THE CLOSELY-HELD COMPANY Ice Miller LLP Legal Counsel 2013 Ice Miller LLP All Rights Reserved TABLE OF CONTENTS PART
More informationRETIREMENT PLAN SERVICES
OVERVIEW Helping your employees prepare for retirement is one of the most valued benefits you can offer. At The PrivateBank, we understand the important role retirement planning plays in your overall benefits
More informationESOPs in 2014 Myths and Reality. Indiana Benefits Conference March 18, 2014
ESOPs in 2014 Myths and Reality Indiana Benefits Conference March 18, 2014 What Is an ESOP? An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that is designed to invest primarily in the
More informationA look at the good, the bad, and the ugly of an Employee Stock Ownership Plan
Institutional Retirement and Trust A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan Employee Stock Ownership Plans (ESOPs) are unique among retirement plans. An ESOP merges
More informationESOPs and Estate Planning. Kelly O. Finnell, J.D., CLU, AIF President, Executive Financial Services, Inc.
ESOPs and Estate Planning Kelly O. Finnell, J.D., CLU, AIF President, Executive Financial Services, Inc. Next Big Estate Planning Opportunity Baby Boomer Business Owners 72% Planning for Monetization Event
More informationEmployers Accounting for Employee Stock Ownership Plans 19,741 NOTE
Employers Accounting for Employee Stock Ownership Plans 19,741 Section 10,580 Statement of Position 93-6 Employers Accounting for Employee Stock Ownership Plans NOTE November 22, 1993 Statements of Position
More informationWelcome and thank you for joining! The webinar will begin shortly.
Welcome and thank you for joining! The webinar will begin shortly. 1 ESOPs 101 (What/Why/How) Mark R. Kossow Paul S. Fusco Boylan, Brown, Code, Vigdor & Wilson, LLP 2400 Chase Square Rochester, New York
More informationESOP LOGIC. How to Cash Out Tax-Free and Still Keep Your Business. A Practical Guide for Business Owners and Their Advisors. www.morganlewis.
ESOP LOGIC How to Cash Out Tax-Free and Still Keep Your Business A Practical Guide for Business Owners and Their Advisors David Ackerman John A. Kober ESOP LOGIC TABLE OF CONTENTS INTRODUCTION THE MAGIC
More informationANATOMY OF AN ESOP. Employee Stock Ownership Plans From the Perspective of the Business Owner
ANATOMY OF AN ESOP Employee Stock Ownership Plans From the Perspective of the Business Owner MARK D. WELKER mark.welker@huschblackwell.com 816-983-8148 KCP-1712449-3 Copyright Mark D. Welker 1/23/09 TABLE
More informationBUSINESS SUCCESSION: PLAN NOW FOR SUCCESS
BUSINESS SUCCESSION: PLAN NOW FOR SUCCESS 6 STEPS TO ACHIEVE YOUR VISION As a business owner, you ve invested time and effort to build a business that supports your family and many others, including employees,
More informationESOP Advantage. Employee Stock Ownership Plan
ESOP Advantage Employee Stock Ownership Plan E The Smart Way to Structure Your Business The most important business move you ll ever make - could be your next one. If you are an entrepreneur launching
More informationTransferring Your Company to Key Employees White Paper
Transferring Your Company to Key Employees White Paper Owners wishing to sell their businesses to management (key employees) face one unpleasant fact: their employees have no money. Nor can they borrow
More informationCamille Kerr and Corey Rosen, National Center for Employee Ownership
Camille Kerr and Corey Rosen, National Center for Employee Ownership Companies with 1,000 or fewer employees, almost all of which are closely held, provide almost 60% of all private sector jobs in the
More informationEMPLOYEE INCENTIVE COMPENSATION PLANS: WHICH STRUCTURE IS BEST FOR YOUR BUSINESS? (Employment Advisory No. 1)
EMPLOYEE INCENTIVE COMPENSATION PLANS: WHICH STRUCTURE IS BEST FOR YOUR BUSINESS? (Employment Advisory No. 1) Choosing the appropriate instrument to properly attract and retain key employees with incentives
More informationThis Webcast Will Begin Shortly
This Webcast Will Begin Shortly If you have any technical problems with the Webcast or the streaming audio, please contact us via email at: webcast@acc.com Thank You! Employee Stock Ownership Plans: Is
More informationAppendix A: Types of Retirement Plans
Appendix A: Types of Retirement Plans (Congress periodically changes the applicable dollar amounts, percentages, and employee age requirements for the various retirement plans discussed in this section
More informationVALUATION observations
November 2010 Vol. 2010-05 230 West Street Suite 700 Columbus, OH 43215 614.221.1120 www.gbqconsulting.com 111 Monument Circle Suite 500 Indianapolis, IN 46204 317.423.0150 www.gbqgoelzer.com VALUATION
More informationESOP CONNECT. THE RESURGENCE OF THE NON-LEVERAGED ESOP Daniel M. Zugell, CLU, ChFC, LUTCF, Ambassador
ESOP CONNECT THE RESURGENCE OF THE NON-LEVERAGED ESOP Daniel M. Zugell, CLU, ChFC, LUTCF, Ambassador A discussion regarding Employee Stock Ownership Plans (ESOPs) must contain the obligatory ESOP basics,
More informationEmployee Stock Ownership Plans (ESOPs) Introduction
Course Objective This course was created to teach advisors (CPAs, EAs, accountants, attorneys, financial planners, and insurance advisors) about ESOPs, which is a topic that has a mistaken reputation for
More informationEMPLOYEE STOCK OWNERSHIP PLANS
EMPLOYEE STOCK OWNERSHIP PLANS Donald C. Hess Taft, Stettinius & Hollister Cincinnati, Ohio I. What is an ESOP? A. An employee stock ownership plan ("ESOP") is a form of tax-qualified defined contribution
More informationESOP OVERVIEW. for Denver Estate Planning Council. November 12, 2015
ESOP OVERVIEW for Denver Estate Planning Council November 12, 2015 BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee,
More informationHow To Write A Leveraged Employee Stock Ownership Plan
Leveraged Employee Stock Ownership Plans May 29, 2007 J. Todd Butler, Esq. LESOPs in General An employee stock ownership plan ( ESOP ) is a qualified retirement plan. The main difference between an ESOP
More informationSPAWN IDEAS EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST SUMMARY PLAN DESCRIPTION
SPAWN IDEAS EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST SUMMARY PLAN DESCRIPTION FEBRUARY, 2015 SPAWN IDEAS EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS Page 1. INTRODUCTION...
More informationFinancing Business Growth
Name: Class: Date Taken: Total Possible Marks: 30 Financing Business Growth Complete the following questions in the time allowed by your teacher. Identify up to three factors that a business should consider
More informationUnderstanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt
Understanding a Firm s Different Financing Options A Closer Look at Equity vs. Debt Financing Options: A Closer Look at Equity vs. Debt Business owners who seek financing face a fundamental choice: should
More informationSelling to an ESOP: A Step-by-Step Guide
Vermont Employee Ownership Center Annual Conference June 8, 2012 Selling to an ESOP: A Step-by-Step Guide Tabitha Croscut, Esq. Steiker, Fischer, Edwards & Greenapple, P.C. & SES Advisors, Inc. 1 Agenda
More informationADVANCED ESOP STRATEGIES: OPTIONS AND ALTERNATIVES
Welcome to ADVANCED ESOP STRATEGIES: OPTIONS AND ALTERNATIVES Presented by www.menke.com 1 Today s Agenda Introduction Basic ESOP Transactions Advanced ESOP Transactions Tax Considerations Financing Considerations
More information2015 Midwest ESOP Conference ESOP Essentials: ESOP Basics for New Participants
2015 Midwest ESOP Conference ESOP Essentials: ESOP Basics for New Participants Presented by: Jim Myott, J.D., CPA Boulay PLLP jmyott@boulaygroup.com Kevin Rusch, CPA, QPA Blue Ridge ESOP Associates KRusch@BlueRidgeESOP.com
More informationIntroduction. David R. Johanson Johanson Berenson LLP
Introduction David R. Johanson Johanson Berenson LLP Perhaps the most powerful tax and business succession planning tool available to shareholders of a closely held company is the ability to sell stock
More informationIn 1998 Congress revised the S Corporation S
Maximizing Retirement Benefits Using a Subchapter S Corporation ESOP By Ira Langer Ira Langer explores the benefits of using S Corporation owned ESOPs in retirement planning and addresses some frequently
More informationHoss s Steak & Sea House, Inc. Employee Stock Ownership Plan (ESOP)
Hoss s Steak & Sea House, Inc. Employee Stock Ownership Plan (ESOP) Michael P. Jewer & Associates, Inc. P. O. Box 599 Lititz, PA 17543-0599 Phone: 717-627-2433 Fax: 717-626-7220 www.michaelpjewerandassociates.com
More informationShareholder Disputes Complex Valuation Issues and Potential Solutions
Shareholder Disputes Complex Valuation Issues and Potential Solutions Daniel R. Van Vleet, ASA Managing Director Stout Risius Ross, Inc. dvanvleet@srr.com Overview The Delaware Chancery Court and S Corp
More informationItem IRA Version 401(k) Version Plan type. Individual IRA for each Cash or deferred profit sharing plan.
The Small Business Job Protection Act of 1996 created an entirely new type of retirement plan called SIMPLE, an acronym that stands for Savings Incentive Match Plan for Employees. It is available for any
More informationPaschall Truck Lines, Inc. Frequently Asked Questions Regarding our ESOP
Frequently Asked Questions Regarding our ESOP 1 Table of Contents Introduction to this FAQ... 4 1. Overview... 4 2. Purpose... 4 ESOP Basics... 5 3. What is an ESOP? What does ESOP stand for?... 5 4. What
More informationG Employee Benefits Alert
G Employee Benefits Alert August 2001 The Economic Growth and Tax Relief Reconciliation Act of 2001 The Economic Growth and Tax Relief Reconciliation Act of 2001 (the Act ) ushers in the most significant
More informationBuying and Selling an ESOP Company
Buying and Selling an ESOP Company 2015 ACG Charlotte Deal Crawl Affinity Seminar September 22, 2015 Alberto Toribio del Pilar ButcherJoseph & Co. 101 S. Hanley Rd., Suite 1450 St. Louis, MO 63105 P: (314)
More informationEmployee Stock Ownership Plans: A Status Report
URBAN INSTITUTE Brief Series No. 10 June 2000 Employee Stock Ownership Plans: A Status Report Pamela Perun FOR THE PAST 25 YEARS, EMPLOYEE STOCK ownership plans (ESOPs) have provided employers with a means
More informationThe Role of an Independent Financial Adviser in ESOP Installation Transactions
ESOP Transaction Insights The Role of an Independent Financial Adviser in ESOP Installation Transactions Kyle J. Wishing, Weston C. Kirk, and John W. Haley Transactions are highly anticipated and highly
More informationIt s All About the Business
It s All About the Business Planning Strategies Integrated with Life Insurance to Help a Business Owner Accomplish Goals for Retirement, Business Perpetuation, Successful Business Transition, and Estate
More informationIdentifying ESOP Opportunities
Identifying ESOP Opportunities Thomas Roback, Jr., CEP, QKA Managing Director Blue Ridge ESOP Associates 434.220.7947 troback@blueridgeesop.com October 26. 2014 I. About Blue Ridge ESOP Associates 1 Over
More information3/22/2011. Financing an ESOP Transaction. Table of Contents. I. The Leveraged ESOP Transaction. John L. Miscione Managing Director
Presented by John L. Miscione Managing Director Table of Contents I. The Leveraged ESOP Transaction II. ESOP Tax Benefits III. Debt Capacity IV. Financing Markets and Terms V. The Lender s Perspective
More information[NAME OF PRESENTATION TO COME]
Nuts and Bolts of Leveraged ESOP Finance [NAME OF PRESENTATION TO COME] Mark A. Bonenfant Buchalter Nemer Los Angeles, California PRESENTED IN TWO SEGMENTS BN 17886518 Third Party PRESENTED BY Legal Opinions
More informationRestricted Stock Plans
Restricted Stock Plans Key Employee Incentives Some S and C Corporation Considerations Michael A. Coffey Lisa J. Tilley, CPA P.O. Box 12025 Roanoke, VA 24022-2025 Phone: (540) 345-4190 1-800-358-2116 Fax:
More informationU.S. Department of Labor Sues Cactus Feeders, Inc. for Millions Over ESOP Plan What s the Beef?
washburnlaw.edu/waltr Article 2016-008 April 4, 2016 U.S. Department of Labor Sues Cactus Feeders, Inc. for Millions Over ESOP Plan What s the Beef? Roger A. McEowen Kansas Farm Bureau Professor of Agricultural
More informationEmployee Stock Ownership Plans ("ESOPs") Michael J. Canan, Shareholder GrayRobinson, P.A. Orlando
Employee Stock Ownership Plans ("ESOPs") Michael J. Canan, Shareholder GrayRobinson, P.A. Orlando In appropriate situations, ESOPs can be extremely effective tools for transferring ownership interests
More informationA Comprehensive Guide to ESOPs
A Comprehensive Guide to ESOPs Audit Tax Advisory Risk Performance The Unique Alternative to the Big Four Crowe Horwath LLP Table of Contents Introduction... 3 What Is an ESOP?... 4 ESOPs as a Corporate
More informationFINANCIER 10QUESTIONS MANAGING REPURCHASE LIABILITY ARISING FROM AN ESOP JULY 2013 R E P R I N T F I N A N C I E R W O R L D W I D E.
R E P R I N T F I N A N C I E R W O R L D W I D E. C O M PREPARED ON BEHALF OF 10QUESTIONS MANAGING REPURCHASE LIABILITY ARISING FROM AN ESOP REPRINTED FROM EXCLUSIVE ONLINE CONTENT PUBLISHED IN: JULY
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K. For the fiscal year end December 31, 2009
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year end December 31, 2009
More informationSpecial Considerations in Designing and Operating an ESOP
ERISA COMPLIANCE & ENFORCEMENT STRATEGY GUIDE Selected Audit and Compliance Issues Special Considerations in Designing and Operating an ESOP Gregory K. Brown Katten Muchin Rosenman LLP Chicago, Illinois
More informationUse this section to learn more about business loans and specific financial products that might be right for your company.
Types of Financing Use this section to learn more about business loans and specific financial products that might be right for your company. Revolving Line Of Credit Revolving lines of credit are the most
More informationCash or Deferred 401(k) Plan
The Basics Any profit sharing or stock bonus plan that meets certain participation requirements of IRC Sec. 40(k) can be a cash or deferred plan. An employee can agree to a salary reduction or to defer
More informationThe Ins and Outs of Employee Stock Ownership Plans
The Ins and Outs of Employee Stock Ownership Plans Corey W. Jenkins, J.D., LL.M. Scott W. Faulkner, J.D., LL.M., C.P.A. Lanier Ford Shaver & Payne P.C. 2101 West Clinton Ave., Suite 102 Huntsville, AL
More informationESOP An Alternative Exit Strategy (while Maximizing Business Cash Efficiency)
ESOP An Alternative Exit Strategy (while Maximizing Business Cash Efficiency) Presented to : Givner & Kaye Copyright 2009 Corporate Solutions Group, LLC No part of this presentation may be reproduced,
More informationESOP FUNDAMENTALS TAX & FINANCIAL BENEFITS (THE ABC'S OF ESOPS) www.menke.com
ESOP FUNDAMENTALS TAX & FINANCIAL BENEFITS (THE ABC'S OF ESOPS) www.menke.com 1 Introduction 2 What is an ESOP? Similar benefits of other company funded retirement plans (e.g., 401k, PSP). Tax deductible
More informationShould Your S Corporation Adopt An ESOP?
Should Your S Corporation Adopt An ESOP? Kevin G. Long The significant tax savings currently heralded in the tax press for S corporations that use an ESOP depend on the strategy for the use of the ESOP,
More informationESOP Summary Plan Description
BUSINESS IN THE RIGHT DIRECTION. GO WEST. ESOP Summary Plan Description for participants in the Employee Stock Ownership Plan This Summary Plan Description (SPD) corresponds with the plan document dated
More informationEMPLOYEE STOCK OWNERSHIP PLANS CANDIDATE COMPANY CHARACTERISTICS
EMPLOYEE STOCK OWNERSHIP PLANS CANDIDATE COMPANY CHARACTERISTICS Prepared by Sheldrick, McGehee & Kohler, LLC Suite 3140 One Independent Drive Jacksonville, Florida 32202 Overview While certainly not the
More informationAn Alternative to Selling Your Business: Employee Stock Ownership Plan
An Alternative to Selling Your Business: Employee Stock Ownership Plan JANUARY 22 nd Sheraton Columbia Town Center Hotel 10207 Wincopin Circle Columbia, MD 21044 Steven B. Greenapple, Esq. Shareholder
More informationTIME WARNER CABLE INC. CONSOLIDATED BALANCE SHEET (Unaudited)
CONSOLIDATED BALANCE SHEET June 30, December 31, 2011 2010 (in millions) ASSETS Current assets: Cash and equivalents...$ 3,510 $ 3,047 Receivables, less allowances of $86 million and $74 million as of
More informationLife Stages of ESOP Participant
Tri-Chapter Regional Conference Pinehurst, North Carolina March 25-27, 2012 ESOP Distribution Rules Lisa J. Tilley, CPA Senior Management Consultant Corporate Capital Resources, LLC. Melissa W. Spencer
More informationRedemption Approach to Leveraged ESOP Transactions
Redemption Approach to Leveraged ESOP Transactions Scott D. Levine, CPA/ABV, CFA, ASA Managing Director Stout Risius Ross, Inc. Peter H. Briggs Managing Director Shareholder Strategies, Inc. CLASSIC LEVERAGED
More informationScott Bowe Terry Mace Robert Govett
PUB-FR-427 2008 Scott Bowe Terry Mace Robert Govett Publication Authors Scott Bowe, Associate Professor and Extension Specialist, University of Wisconsin-Madison (sbowe@wisc.edu) Terry Mace, Utilization
More informationKSOP Guide Introduction
KSOP Guide Introduction Welcome to the Appleton family of companies. As an employee of Appleton, you have a unique ownership opportunity to invest your retirement savings in company stock. The KSOP is
More informationOverview (continued)
Overview Alternative Exit Strategies Criteria for Evaluating Alternatives Introduction to ESOPs Profile of an Ideal ESOP Candidate ESOP Corporate Governance How Does an ESOP Work? 1 Overview (continued)
More informationCentel Retirement Savings Plan for Bargaining Unit Employees
Centel Retirement Savings Plan for Bargaining Unit Employees 1 R E T I R E M E N T S A V I N G S P L A N WHAT IS INSIDE Answering Your Needs... 1 Future of the Plan... 1 A Quick Look At The Plan... 2
More informationGoals of the Session
Accounting for ESOPs: Impact on Financial Statements of Plan Sponsors Presented by Lisa J. Tilley, CPA Senior Vice President Corporate Capital Resources, LLC Norman S. Kocol Chief Financial Officer Mapes
More informationGuide To Wealth Management
Guide To Wealth Management There are many financial issues that impact our lives. Many people never formally address important concerns with their advisors because the conversations may be difficult to
More information