San Francisco, California
London, United Kingdom
Recently, income and capital gains tax rates have changed significantly! We will examine the resurgence of Employee Stock Ownership Plans (ESOPs) as an increasingly tax advantaged method of transferring a closely held business from one generation to the next, or to key management. ESOPs offer many advantages, tax and otherwise, to the selling shareholder, the sponsoring company, and the employees. They provide the owner with immediate liquidity (in whole or part) without the hassle of identifying and negotiating with third party buyers, corporate tax deductions, and capital gains tax deferrals. The presentation will discuss the mechanics of ESOPs, how an ESOP compares to the other transition methods, and how ESOPs can be integrated seamlessly with the owner's estate plan for the benefit of the owner's family. This presentation will also discuss the role of the financial, legal, banking and accounting advisors including the mandatory investment sales and the large insurance sales associated with ESOPs.