ESOP SUCCESSION PLANNING: STRUCTURING LIQUIDITY WHILE PRESERVING LEGACY
This panel discussion will explore Employee Stock Ownership Plans (ESOPs) as a succession alternative for closely held business owners, with a focus on economic outcomes and tax efficiency. Panelists will discuss why owners choose ESOPs versus third party sales, including the potential capital gains tax deferral benefits available through a Section 1042 exchange. The discussion will feature perspectives from an ESOP investment banker, a selling shareholder who completed an ESOP transaction, and an advisor with deep experience structuring and executing the 1042 exchange. Attendees will gain a practical, real world perspective on the benefits, limitations, and execution considerations of ESOP transactions.
Learning Objectives:
-
Assess when an ESOP is an appropriate succession and liquidity strategy relative to a third party sale based on a client’s objectives, risk profile, and timeline
-
Evaluate the financial, tax, and strategic implications of ESOP transactions for business owners, including the relevance of Section 1042 in select situations
-
Analyze how transaction structure and financing considerations influence deal feasibility and long term sustainability
-
Identify execution risks, trade offs, and common misconceptions that advisors should address when counseling clients on ESOP based exits
-
Apply a practical framework to help clients determine whether an ESOP aligns with their economic goals, legacy priorities, and planning complexity
Event Location
Event Details
Who Should Attend?
-
Attorneys
You have close relationships with clients, and can benefit from being the first advisor to introduce the idea of exit planning.
-
CPAs/Accountants
Owners participating in the State of Owner Readiness research continue to indicate that you are the No. 1 "Most Trusted Advisor." You are a natural fit to lead the exit planning team and deepen your relationship (and retention) of next generation owners.
-
Wealth Managers
You’re a skilled relationship person. Being entangled into your clients’ professional lives matters as you build a strategy to manage their wealth upon them harvesting it from their business. Exit planning allows you to build a deeper relationship with your client, expands your COI network, while giving you an early seat at table well before the liquidity event.
-
Financial Advisors
One of the critical ‘legs of the stool’ is personal financing planning. An owner must have a strong financial plan & contingency plan post-transition to enable them to thrive in the next act of the lives personally and financially. Exit planning brings this future mindset into the present. Exit is now.
-
Estate Planners
Exit planning is a natural fit for estate planners who want to operate more holistically with their owner clients.
-
Investment Bankers
Only 2 of every 10 businesses that come to market actually sell. Learn how exit planning can bring attractive AND ready business to your purview.
-
Valuation Analysts
Valuation is both a billable engagement AND an opportunity to provide owners some perspective on how to accelerate value drivers (and deal with value killers). Use exit planning to make that valuation into a longer term value acceleration engagement.
-
Mergers & Acquisition Advisors
Proper exit planning causes less deals to fall through at the last minute. Connect with CEPAs to build your healthy deal flow network.
-
Insurance Professionals
Exit planning addresses the 5 D's. So do you. Approach the risk conversation differently with exit planning.
-
Strategic Consultants
One of the most critical roles in exit planning is building transferable value. Strategic consultants have the ability to expand options and drive rapid business value that affect performance today.
-
Other Professional Advisors
Regardless of your unique specialty, there is seat at the exit planning table for you. Learn more at www.EarnCEPA.com.
-
Family Business Advisors
More than 50% of lower middle market business owners would prefer to transition to the next generation. Help them succeed with exit planning strategies.
-
Commercial Lenders
One of the best relationships a business owner makes is with their banker. How can you help your corporate clients think about the future and ensure financial continuity? Answer: exit planning.
-
Other Business Professionals
-
Business Consultants
-
Professional Advisors
-
Private Business Owners
-
Members of Family Business Boards
-
Business Owners & Their Trusted Advisors
-
Business Owners
EXIT PLANNING IS GOOD BUSINESS STRATEGY
The Exit Planning Institute, provides Financial Advisors, Accountants, Consultants, and other advisors of business owners with the critical education to differentiate themselves and add value to their existing client relationships through a credential, conference, courses, and content. Download the CEPA brochure for more information.